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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
Boards of directors of different firms that have one or more of the same people serving as directors. Interlocking directorates are illegal among competing firms.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.