Fourth Hershey Trust Board Member Quits in 12 Months Amid Corporate Governance Probe

12 Jul 2016 --- A board member of Hershey's charitable arm, which controls the majority of voting shares in the confectionery giant, has quit, just weeks after Hershey rejected a $23 billion offer from rival Mondelez International.

Joan Steel, a board member of the Hershey Trust since 2012, quit over the weekend, the fourth departure from the board in the past year.

While no reason for the exit of Steel was given, according to Reuters her departure comes as the trust is entangled in a dispute with the Pennsylvania Attorney General's office over its governance.

The attorney general's office is investigating the trust relating to excessive spending and allowing board members to overstay their terms.

The office has requested three of the Hershey trustees-Velma Redmond, Joseph Senser and Robert Cavanaugh- step down because they have exceeded the mandatory board term limits of 10 years.

The probe comes as Hershey is looking to be taken over by rival Mondelez International.

Earlier this month, Hershey, whose brands include Reese's chocolate and Hershey’s Kisses and Hershey’s Nuggets, rejected a $23 billion offer from Mondelez International.

The proposed deal would require the backing of the Hershey Trust, which controls 81 percent of the company's voting power.

The trust was set up to benefit the Milton Hershey School for disadvantaged children.

Three other board members - Stephanie Bell-Rose, John Fry and Richard Zilmer - have resigned from the trust in the past 12 months.