Section 8 Clayton Act

A corporation enters a new product area that places it in competition with another corporation.

Section 8 clayton act. 12 cfr part 212 management official interlocks u s. 2 1929 amended second par. Section 8 of the clayton act.

Thus as a general rule a person cannot serve on the boards of two competing companies. The clayton act sought to prevent anticompetitive practices in their incipiency. Potential interlocking directorate issues can arise in a variety of contexts including where.

Section 8 of the clayton act prohibits certain overlaps in officers or directors between competing companies to guard against anti competitive coordination and information exchanges that can arise from simultaneous board membership. The clayton antitrust act sought to address the weaknesses in the sherman act by expanding the list of prohibited business practices that would prevent a level playing field for all businesses. Like other portions of the forward looking clayton act including section 7 with its proscription on mergers that are likely to harm competition section 8 was designed to nip in the bud incipient violations of the antitrust laws by removing the opportunity or temptation to such violations through interlocking directorates.

Section 8 of the clayton act 15 u s c. 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. 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.

A company or private equity firm takes a minority stake in a competitor. 19 a 1 b. 730 enacted october 15 1914 codified at 15 u s c.

Property rental listings directly to public housing authority maximize rental listing exposure. 12 27 29 u s c. 9 1928 amended second par.