FTC Announces Revised Thresholds For Interlocking Directorates - January 22, 2016

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 will take effect upon publication in the Federal Register, which is expected shortly. 

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 $31,841,000 (increased from $31,084,000) and the competitive sales of both corporations equal or exceed $3,184,100 (increased from $3,108,400). 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.