Following the Department of Justice’s announcement in 2022 regarding its intention to reinvigorate enforcement of Section 8 which prohibits directors and officers from serving simultaneously on the boards of competitors, many undertakings and directors unwound interlocks or declined to appoint board members, without admitting liability. According to the U.S. Department of Justice, competitors sharing officers or directors further concentrates power and creates the opportunity to exchange competitively sensitive information and facilitate coordination to detriment the economy and consumers. Therefore, the U.S. Department of Justice aims to prevent antitrust violations pre-emptively by eliminating the opportunity to coordinate through interlocking directorates.
(U.S. Department of Justice – 09.03.2023)
NAZALI TAX & LEGAL