interlocking directorates

plural noun

1. boards of directors of different companies having sufficient members in common to ensure that the companies involved are under the same control

Example Sentences

“We remain steadfast in our commitment to protect competition by preventing interlocking directorates that we believe violate Section 8 of the Clayton Act,” Deputy Assistant Attorney General Andrew Forman of the department’s antitrust division said in a statement.

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At issue is the idea of interlocking directorates, where people simultaneously serve on the boards of ostensible competitors.

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Concern over such “interlocking directorates” also played a role in passage of the Clayton Antitrust Act in 1914, which explicitly prohibits executives of competing companies from serving on the same board.

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Levinson, who is also a director at Apple Inc, resigned after federal regulators began looking into the "interlocking directorates" between the two companies.

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In brief, it prohibits price discriminations among purchasers, exclusive trade agreements between manufacturers and retailers, the holding of the stock of one corporation by another, and interlocking directorates.

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