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What the DOJ’s targeting of boardroom overlaps means for US directors
02 December 2022 00:00
Seven company board members from five companies in the US have recently been ousted by the US Department of Justice. The directors’ dramatic defenestration is linked to the DOJ’s decision to breathe new life into Section 8 of the Clayton Act, which prohibits interlocking directorates among competitors. The logic behind the law is that shared board members can lead to a dampening of competition or even to the illegal exchange of information among rivals. The DOJ’s decision to reawaken the dormant 1914 provision will prompt some particularly serious soul-searching among directors appointed by private equity firms.
The US Department of Justice’s antitrust division is shaking up the world of corporate governance.