The Department of Justice has stepped up its enforcement of antitrust rules against interlocking directorates. Subject to de minimis exceptions, Section 8 of the Clayton Antitrust Act prohibits the same person from serving on the boards of two competitors. But recently, the DOJ has interpreted the statute more broadly, leading to director resignations where different individuals—who were associated with the same private equity or venture capital firm—served on the boards of competing companies. Companies should take care to assess their Section 8 exposure, as discussed in this excellent Alert from the Cooley Antitrust group, Biden Justice Department Continues Focus on Interlocking Directorates. Be sure to check it out!
- Posted in: Corporate Governance, Litigation
- Tagged in: Clayton Act Section 8, interlocking directorates