interlocking directorate

Definition

1. Noun:
   • A corporate governance structure: An "interlocking directorate" refers to a situation where two or more companies share one or more directors on their respective boards. This practice allows for coordination, information sharing, or influence between the firms, often raising concerns about antitrust or conflicts of interest in business law.

Usage Examples

• (A shared director between two companies.)
• (A formal arrangement of shared board members.)

Advanced Usage

• "Interlocking directorate" as a competitive concern: In economics and law, the term is often used to describe a situation that may reduce market competition because directors have access to confidential information from multiple competing firms.
  • The merger was blocked due to the existence of an interlocking directorate that already gave one company undue influence over its rival. (A shared directorate preventing fair competition.)

Variants and Related Words

• Interlocking (adj): joined together or linked in a way that prevents separation.
  • The companies have interlocking ownership structures. (Their ownership is linked.)
• Directorate (n): a board of directors or the position of a director.
  • The directorate voted on the new policy. (The board of directors.)
• Interlock (v): to connect or fit together so that movement is limited.
  • The two firms interlocked their boards to share resources. (They linked their directorates.)

Synonyms

• Shared directorship: the practice of having a common director on multiple boards.
• Cross-directorship: a type of interlocking directorate where directors serve on each other's boards.

Related Idioms

• "Revolving door": a metaphor for the movement of individuals between roles as legislators, regulators, and members of the industries they regulate, sometimes involving interlocking directorates.
  • The revolving door between the government and the corporate sector often leads to interlocking directorates. (Movement of people between roles.)