The Federal Trade Commission has announced changes in the two threshold figures that define when it is unlawful for an individual to serve as an officer or director of two or more competing corporations. Under the new thresholds, effective immediately, Section 8 of the Clayton Act is applicable to such arrangements if each of two companies has capital, surplus and undivided profits in excess of $14,730,000, and the competitive sales of each corporation exceed $1,473,000.
Section 8 of the Clayton Act charges the FTC with preventing and eliminating unlawful interlocking directorates. A 1990 amendment to Section 8 requires the FTC to adjust the thresholds that trigger the prohibition -- originally set at $10 million and $1 million, respectively -- each year, based on the change in the Gross National Product.
The Commission vote to adjust the threshold levels was 4-0 with Commissioner Mary L. Azcuenaga not participating.
Copies of the notice announcing the changes will be published in the Federal Register shortly. They are available on the FTC's World Wide Web site at: http://www.ftc.gov and from the FTC's Consumer Response Center, Room 130, 6th Street and Pennsylvania Avenue, N.W., Washington, D.C. 20580; 202-326-3128; TTY for the hearing impaired 1-866-653-4261. To find out the latest news as it is announced, call the FTC NewsPhone recording at 202-326-2710. FTC news releases and other materials also are available on the Internet at the FTC's World Wide Web site at: http://www.ftc.gov
(FTC Matter No. P859 910)