This is because, in the context of auditor choice, interlocking directorate
is viewed as a connection between the focal board and the auditor appointed in the company of the interlocked board.
There have been derivative suits alleging illegal interlocking directorates
. In these suits, members of the board of a company are accused of breaching their fiduciary duties by allowing the overlapping directorate in violation of antitrust law.
244-45 (1981) (arguing that the interlocking directorate
"The Interlocking Directorate
." American Economic Review 59: 314-323.
also have a learning component.
An interlocking directorate
occurs when a person affiliated to one organization sits on the board of directors of another.
Second, I analyze intersectoral relations via a social network analysis of interlocking directorate
relations between the fossil fuel sector and the renewables industry, including Crown corporations, renewable industry associations, and climate capitalist civil society organizations.
The typical conceptualization of an interlocking directorate
is when two firms share one or more directors.
Additional evidence of the board's role in the determination of corporate strategy may be found in research investigating the diffusion of innovations throughout interlocking directorates
. Davis (1991), for example, found that poison pill anti-takeover provisions diffused through the interlocking directorate