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Interlocking Directorate |
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Interlocking directorate Describes cross-memberships of directors on each other's company Board of Directors. Interlocking Directorate A situation or state in which one person is a member of the board of directors in more than one publicly-traded company. This creates the possibility of a conflict of interest; indeed, interlocking directorates are illegal when two companies are competitors. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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Interlocking directorates can be incredibly complex, with relationships open to questions due simply to appearance. NRES, GNCP and Senior may be deemed to be affiliates due to their interlocking directorates, common stockholders and business relationships. Such an election would result in a violation of Section 8 of the Clayton Act, which prohibits interlocking directorates between competitors. |
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