Clifford Chance

Don’t Get Tangled Up With Interlocking Directorates

7 January 2013

Every so often, a company gets wrapped up in interlocking directorate trouble. When that happens, companies come under the antitrust microscope of the Federal Trade Commission and Department of Justice.  And often, when the antitrust agencies have a company in their sight, they will ask themselves: what other antitrust compliance issues might be lurking?  The answer may result in a costly (legal fees, fines and penalties) and disruptive (private plaintiff litigation) antitrust investigation, along with the baggage (reputational damage, shareholder questions) that often comes with it.  Following is a brief description of the interlocking directorate concern, and some simple steps you can take to avoid the issue.

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