Propane Company Accuses Greatbanc of Trying to Replace Board (1)

The parent company of propane provider Ferrellgas Inc. sued Greatbanc Trust Co. Oct. 24, accusing it in its capacity as employee stock ownership plan trustee of unlawfully attempting to replace the company’s board members with its own hand-picked individuals.

Greatbanc allegedly tried to “unilaterally” impose potential transactions on Ferrell Companies Inc., and insisted the board take up proposals contrary to the interest of the company, according to the complaint. In response to the alleged “escalating breaches” of fiduciary duties and the Labor Department’s purported determination that Greatbanc be replaced, Ferrell reportedly sent Greatbanc a notice of removal as plan trustee ...