Interlocking directorate


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Interlocking directorate

Describes cross-memberships of directors on each other's company Board of Directors.

Interlocking Directorates

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.
References in periodicals archive ?
There have been derivative suits alleging illegal interlocking directorates.
Interlocking Directorates and Section 8 of the Clayton Act
Keywords: Interlocking directorates, board of directors, supervisory board.
According to Pfeffer (1987), interlocking directorates are the most appropriate and least costly form of inter-organizational coordination when the ownership of the industry is legally prohibited or impossible owing to resource constraints.
Second, we discuss each of the separate forms of interorganizational relationships, including joint ventures, network structures, consortia, alliances, trade associations, and interlocking directorates.
The main thesis of this research note is that in societies where business groups are the distinctive unit organizing the economy - in contrast to those where the firm is the key economic actor - the interlocking directorate is one of the means employed to control and coordinate firms in the groups.
In a seminal work regarding the formation and history of Scottish capital, Scott and Hughes (1980) provide evidence that kinship ties were a means of a sustained continuity of control over firms through a network of interlocking directorates.
Given the likelihood that interlocking directorates are conduits for the spread of norms and managerial innovations (e.
A primary source of evidence used to support the argument that commercial banks are pivotal in the social organization of the business community has been the repeated finding of bank centrality in networks of interlocking directorates.
HSR filing analyses, and determinations of which interlocking directorates may violate Section 8 of the Clayton Act, are highly technical.
Cooptive corporate actor networks: a reconsideration of interlocking directorates involving American manufacturing.
national business communities such as Canada's persist, held together by a range of factors, including the need to exercise hegemony locally and to access the business scan that interlocking directorates enable.