Interlocking directorates

Topic

An interlocking directorate occurs when two or more corporations share members of their boards of directors, or when they each share directors with a common third firm. This practice can lead to direct interlocks, where an executive of one firm sits on another's board, or indirect interlocks, where directors from different firms sit together on a third board. While it can facilitate corporate collaboration and information sharing, it is often scrutinized for potential antitrust and anti-competitive implications.