interlocking directorates
C2Formal, Technical, Academic
Definition
Meaning
A situation where the same individuals serve on the boards of directors of multiple companies.
A corporate governance structure creating networks of influence between separate organizations, often raising concerns about conflicts of interest, reduced competition, and concentrated economic power.
Linguistics
Semantic Notes
Primarily used in the plural form. Implies a systemic or structural connection between organizations, not a one-time event.
Dialectal Variation
British vs American Usage
Differences
No significant lexical differences. Usage is consistent in both corporate and regulatory contexts.
Connotations
Carries the same neutral-to-negative connotation (implying potential for collusion or reduced oversight) in both varieties.
Frequency
Equally low-frequency, technical term in both regions, primarily found in business, economics, and legal texts.
Vocabulary
Collocations
Grammar
Valency Patterns
interlocking directorates between [Company A] and [Company B]interlocking directorates among [several corporations]Vocabulary
Synonyms
Strong
Neutral
Weak
Vocabulary
Antonyms
Phrases
Idioms & Phrases
- “a web of interlocking directorates”
- “a tangled network of interlocking directorates”
Usage
Context Usage
Business
The report examined the interlocking directorates among the major banks and insurance firms.
Academic
The study's hypothesis was that interlocking directorates facilitate the diffusion of corporate strategies.
Everyday
Rarely used in everyday conversation. Might appear in high-level business news: 'Critics point to interlocking directorates as a competition problem.'
Technical
Section 8 of the Act prohibits interlocking directorates between competing corporations above a certain market share threshold.
Examples
By Part of Speech
adjective
British English
- The interlocking-directorate structure was scrutinised by the commission.
American English
- The interlocking-directorate structure was scrutinized by the commission.
Examples
By CEFR Level
- Big companies sometimes have the same people on their boards. This is called interlocking directorates.
- The journalist investigated the interlocking directorates between the media conglomerate and the political party's funding bodies.
- Antitrust authorities are increasingly vigilant about interlocking directorates, viewing them as a potential mechanism for anti-competitive coordination and tacit collusion.
Learning
Memory Aids
Mnemonic
Imagine boardroom chairs literally INTERLOCKING, with the same people sitting in multiple chairs that are locked together, connecting different companies.
Conceptual Metaphor
CORPORATE NETWORKS ARE FABRIC / A WEB (interwoven, interconnected threads creating a single structure).
Watch out
Common Pitfalls
Translation Traps (for Russian speakers)
- Avoid калька 'блокирующие директораты'. The concept is 'переплетающиеся/совмещённые советы директоров' or 'практика совмещения должностей в советах директоров'.
Common Mistakes
- Using it in the singular ('an interlocking directorate') is atypical. The term is almost always plural. Confusing it with 'board of directors' in general.
Practice
Quiz
What is a primary concern associated with interlocking directorates?
FAQ
Frequently Asked Questions
Not universally illegal, but they are regulated in many jurisdictions, especially when they occur between direct competitors, as they may violate antitrust or competition laws.
An interlocking directorate creates a connection at the board level while the companies remain legally separate entities. A merger combines two companies into a single legal entity.
Proponents argue they can facilitate the flow of information, expertise, and best practices between companies, and help in building strategic alliances.
This information is typically in public corporate filings, annual reports, or proxy statements which list the members of the board of directors for each publicly traded company.