The Federal Trade Commission has announced revised thresholds for interlocking directorates required under Section 8 of the Clayton Act (15 U.S.C. § 19(a)(5)). The revised thresholds took effect January 14, 2013.
As revised, with certain exceptions, Section 8 prohibits a person from serving as a director or officer of two competing corporations (other than banks, banking associations, and trust companies) if each corporation has capital, surplus and undivided profits in excess of $28,883,000 (increased from $27,784,000) and the competitive sales of both corporations equal or exceed $2,888,300 (increased from $2,778,400). Note that a person shall not be prohibited from simultaneous service if the competitive sales of either corporation are less than 2 percent of its total sales or the competitive sales of each corporation are less that 4 percent of its total sales.
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Topics: Competition, Directors, FTC, Interlocking Directorate, Officers, Section 8, The Clayton Act, Threshhold Requirements
Published In: Antitrust & Trade Regulation Updates, Business Organization Updates, Finance & Banking Updates, Securities Updates
DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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