The Commission has approved publication of a Federal Register notice announcing 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 (with certain exceptions) if each of two companies has capital, surplus, and undivided profits in excess of $18,193,000, and the competitive sales of each corporation exceed $1,819,300.
As detailed in the notice, which is also posted on the Commission's Web site, 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 and announce the changes in the Federal Register was 5-0. (FTC File No. P859910; staff contact is Gabriel Dagen, Bureau of Competition, 202-326-2573.)
Copies of the documents mentioned in this release are available from the FTC's Web site at http://www.ftc.gov and also from the FTC's Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. Call toll-free: 1-877-FTC-HELP.