Interlocking directorate

Interlocking directorate,

Definition of Interlocking directorate:

  1. Membership on the boards of directors of two or more firms by the same individual. It is normally legal except where the firms are mutual competitors, but is usually considered undesirable because it allows firms to exchange non-public (privileged) information and, therefore, may hinder fair competition.

Meaning of Interlocking directorate & Interlocking directorate Definition