Economic Definition of interlocking directorate. Defined.
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Term interlocking directorate Definition: A common practice in the late 1800s and early 1900s in which the same group of people serve on the boards of directors of different companies in the same industry. The use of interlocking directorates was a means of monopolizing a market by giving control over competing firms to the same group of people. The use of interlocking directorates was specifically outlawed by the Clayton Act in 1914.