FTC Increases “Interlocking Directorate” Thresholds 01/22/2013Posted by Morse, Barnes-Brown Pendleton in Legal Developments.
Tags: clayton act, Federal Trade Commission, interlocking directorate thresholds
By: Carl Barnes
Thresholds for interlocking directorates increased as of January 14, 2013, upon publication of the new thresholds by Federal Trade Commission in the Federal Register. Section 8 of the Clayton Act, 15 U.S.C. §19, generally prohibits one person from serving as a director or officer of two competing corporations if two thresholds are met. Effective upon publication, competitive corporations are covered by the law if each one has capital, surplus and undivided profits aggregating more than $28,883,000 (increased from $27,784,000), unless the competitive sales of either corporation are less than $2,883,300 (increased from $2,778,400).
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