Activist Elliott Investment Management, at odds with Phillips 66 (PSX), fired its latest salvo in court— asking in a suit that Delaware’s Court of Chancery order the company to require four board seats be allowed to stand for election at its annual shareholder meeting, the investment firm said in a March 25 press release.

The move comes after Elliott, which holds a 5.7% stake in the company’s shares underpinned by a $2.5 billion investment, squares off with PSX over the company’s performance. Elliott has also urged Phillips to sell or spin off its midstream business, which the firm has said could generate at least $40 billion for shareholders.

In February, Elliott initially nominated a slate of seven independent candidates for Phillips 66’s board. In March, Mark E. Lashier, Phillips 66 chairman and CEO, responded in a March 4 letter to shareholders that Elliott had made a “series of attacks and proposals regarding monetization of certain business units,” despite financial improvements by the company.

Elliott said the move, among others regarding the board’s composition, violates the company’s governing documents.

After receiving Elliott's notice of director nominations, Phillips announced on Feb. 18 that two sitting directors previously in the 2025 class would not stand for reelection and that the size of the board would be reduced to 12 directors from 14, Elliott said in the press release.

“Despite Elliott privately requesting confirmation, Phillips has still not disclosed how many seats will be up for election or who its nominees will be, requiring Elliott to file a complaint in order to preserve its shareholder rights,” Elliott said.

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