INTERLOCKING DIRECTORATE
The relationship that exists between the board of
directors of one corporation with that of another
due to the fact that a number of members sit on
both boards and, therefore, there is a substantial
likelihood that neither corporation acts independ-
ently of the other.
Because the same persons occupy seats on
the boards of companies that are supposed to
compete in the marketplace, there is a potential
for violations of federal antitrust acts, particu-
larly the CLAYTON ACT (15 U.S.C.A. §§ 12-27
[1914]) which prohibits the existence of inter-
locking directorates that substantially reduce
