interlocking directorates


Two boards of directors which share at least one director in common; illegal if the two companies are competitors.

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The two brand new companies had interlocking directorates, which basically meant that they shared a director in common between them.

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Since John was on two different boards that were not direct competitors of each other he was held the distinction of being an interlocking directorates.

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Boards member Johnson from Zap company, and board member Fredrick from Zip company, shared the acquisition of a half of the building each so they decided to become interlocking directorates.

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interlisted stock interlocutory decree