The Federal Trade Commission has announced revised thresholds
for interlocking directorates required under Section 8 of the
Clayton Act (15 U.S.C. § 19(a)(5)). The revised thresholds are
effective as of January 21, 2020.
As revised, with certain exceptions, Section 8 prohibits a
person from serving as a director or officer of two competing
corporations (other than banks, banking associations, and trust
companies) if each corporation has capital, surplus and undivided
profits in excess of $37,382,000 (decreased from $38,204,000) and
the competitive sales of both corporations equal or exceed
$3,738,200 (decreased from $3,820,400). Note that a person shall
not be prohibited from simultaneous service if the competitive
sales of either corporation are less than 2 percent of its total
sales or the competitive sales of each corporation are less than 4
percent of its total sales.
