Agreement Between Directors With Interlocking
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If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
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FAQ
What Are Interlocking Directorates? Interlocking directorates is a business practice wherein a member of one company's board of directors also serves on another company's board or within another company's management.
Interlocking directorates refers to when a member of a company's board of directors also serves on another company's board or within the company's management. Under the antitrust legislation, interlocking directorates are not illegal as long as the corporations involved do not compete with each other.
While they generally are legal, interlocking directorates between competing corporations are prohibited under the US antitrust laws, due to their potential to result in anticompetitive effects, such as allowing competitors to coordinate business decisions and exchange competitively sensitive information.
Two firms have a direct interlock if a director or executive of one firm is also a director of the other, and an indirect interlock if a director of each sits on the board of a third firm. This practice, although widespread and lawful, raises questions about the quality and independence of board decisions.
An interlocking directorate is the connection that gets created when a board director of one corporation accepts an appointment to be a board director of another corporation.
