What Is Interlocking Directorates?

Interlocking directorate refers to the practice of members of a corporate board of directors serving on the boards of multiple corporations. A person that sits on multiple boards is known as a multiple director.

What is the definition of interlocking directorates quizlet?

interlocking directorates. the linkage between corporations that result when an individual serves on the board of directors of two companies (a direct interlock) or when two companies each have a director on the board of a third company (an indirect interlock). direct interlock.

What do interlocking directorates do?

What Are Interlocking Directorates? Interlocking directorates is a business practice wherein a member of one company's board of directors also serves on another company's board or within another company's management. ... Interlocking directorates does not prevent a board director from serving on a client's board.