FAQ: Interlocking Directorates

by | Nov 8, 2022

What are Interlocking Directorates / Board Interlocks?

Board interlocks are where a person affiliated with one organization sits on the board of directors of another organization. For example, if a director sits on both the boards of Tesla (TSLA) and Ford (F) those boards and that director would be considered interlocked.

Why do Board Interlocks Matter?

Typically interlocking directorates are viewed as posing a potential risk of collusion or anticompetitive behavior. These risks rise significantly when officers and directors are serving simultaneously on the boards of competitors.

Are Board Interlocks Legal?

Section 8 of the Clayton Act (Section 8) prohibits directors and officers from serving simultaneously on the boards of competitors, subject to limited exceptions. 

On October 19, 2022, the Justice Department released a notice stating that it had required 7 directors across 10 interlocked companies to remove directors that created the interlock.

What Does Section 8 of the Clayton Act Say Regarding Interlocking Boards?

The section of the Clayton Antitrust Act prohibiting any person from simultaneously serving as an officer or on the board of directors of competing corporations (known as an interlocking directorate or interlock). Section 8 prohibits interlocks if the corporations are engaged in commerce and have capital, surplus, and profits exceeding certain thresholds, as revised annually by the Federal Trade Commission. Certain safe harbors and exemptions apply to Section 8, including based on the degree of competition between the corporations.

Source: https://content.next.westlaw.com/practical-law/document/I9c43ebe029b711e798dc8b09b4f043e0/Section-8-of-the-Clayton-Act

Analyzing Interlocking Directorates

The Boardroom Alpha platform enables users to evaluate all corporate and personal interlocks between companies, CEOs, CFOs, and directors. Learn more about the Governance Analytics Platform here or the Board Interlock Analysis Database here.

Example Interlocking Directorate / Board Interlock analysis from Boardroom Alpha

Additional References on Board Interlocks / Interlocking Directorates

Recent Analysis

Daily SPAC: GUAC, IDAC IPOs Add $400M in SPAC Capital – May 15, 2026

2 SPAC IPOs priced today, with Berto Acquisition Corp. II (GUAC) raising $250M and Iron Dome Acquisition I Corp (IDAC) raising $150M; IDAC funded trust at 100.5% of par. May MTD totals 9 IPOs / $1,425M through 15 days vs. 5 / $725M over the same span last month. Separately, RAAQ advanced its IQM merger with an F-4 filing.

Daily SPAC: SIMA, CAEP-Air Redemptions – May 14, 2026

SIM Acquisition I (SIMA) lost $242M from trust on its extension approval to Jul. 12, 2027, and Cantor Equity Partners III (CAEP) cleared its Air deal after $234M in redemptions. Separately, GSR V Acquisition (GSRV) priced a $200M IPO, taking May MTD to 7 SPAC IPOs / $1,025M through 14 days.

Daily SPAC: BREZ $125M IPO, GPAT Non-Redemption Agreements – May 13, 2026

GP-ACT III Acquisition (GPAT) disclosed non-redemption agreements tied to extension and trust-amendment votes, with investors pledging support and no redemptions alongside sponsor share transfers. Breeze Acquisition Corp. II (BREZ) priced a $125M IPO today with 100.2% initial trust funding; May MTD is 6 IPOs for $825M through 13 sessions vs. 2 IPOs / $350M at the same point last month.

Daily SPAC: CAEP Forward Purchase, AIR-Pubco – May 12, 2026

Cantor Equity Partners III (CAEP) announced a forward purchase with Harraden Circle to fund the CAEP-AIR-Pubco business combination. Columbus Acquisition (COLA) issued a convertible extension note to WISeSat.Space. MTD: 5 SPAC IPOs raised $700M through the first 12 sessions of May vs. 2 IPOs / $350M over the same span in April.

Subscribe to Boardroom Alpha Newsletters

Subscribe to Boardroom Alpha's research to receive the latest on governance, SPACs, and people.

Disclaimer

The opinions and information contained herein have been obtained or derived from sources believed to be reliable, but Boardroom Alpha cannot guarantee its accuracy and completeness, and that of the opinions based thereon. 

This report contains opinions and is provided for informational purposes only – it does not constitute investment, legal or tax advice. You should not rely solely upon the research herein for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional before you make any investment.  

None of the information contained in this report constitutes, or is intended to constitute a recommendation by Boardroom Alpha of any particular security or trading strategy or a determination by BA that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.  

No representation or warranty, expressed or implied, is made on behalf of Boardroom Alpha as to the accuracy or completeness of the information contained herein. Boardroom Alpha does not accept any liability for any direct, indirect or consequential loss or damage suffered by any person as a result of relying on all or any part of this research and any liability is expressly disclaimed.