interlocking directorate

interlocking directorate definition - finance
Having members of corporationsÂ’ boards of directors or management serve on each otherÂ’s boards. This is illegal if the companies are competitors, but if the companies are in separate industries and donÂ’t compete with each other, it is legal.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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