Unlike the Clayton Act, the PCA does not contain any specific provision expressly prohibiting
interlocking directorates in competing businesses.
Interlocking Directorates and Section 8 of the Clayton Act
One result of these features is the pervasiveness of
interlocking directorates between corporations and the government in emerging economies.
Interlocking Directorates.
Interlocking directorates are the final form of interorganizational relationship discussed in this section.
The
interlocking directorate is an organizational mechanism for the control and coordination of actions of firms in business groups, and it may be found in conjunction with any of the other solidarity mechanisms (Granovetter 1994: 464).
Emerging research from Carroll (2017) provides a wide-angle view on the organization and architecture of the carbon sector in Canada, mapping its internal structure as a network of
interlocking directorates and its ties to the financial sector and other segments of corporate capital--national and transnational.
In the third section, we review the theory of
interlocking directorates, as we believe that director interlocks will form an important mechanism for information sharing and the creation of community-level social capital among family business owners.
Social network techniques have long been used in research on the
interlocking directorate, where the firm is the unit of analysis, but this technique may also be fruitfully applied to the study of relationships between individual directors within boards (see Palmer, 1988, for a discussion of the "dual nature" of corporate interlocks).
Although never formally defined, weak governance is characterized by diffusion of shareholdings among outside owners, board passivity, minimal
interlocking directorates, and managerial/board characteristics such as minimal equity ownership or an insider heavy board (Bethel & Liebeskind, 1993; Dalton & Dalton, 2011; Westphal & Fredrickson, 2001).
