INTERLOCKING DIRECTOR Meaning and
Definition
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Interlocking director refers to a corporate governance practice where an individual serves as a director on the board of directors of multiple companies simultaneously. This practice establishes a network of interconnections among different organizations through shared directorships. An interlocking director is an individual who holds more than one directorship, often in distinct and separate companies.
The concept of interlocking directorships is commonly observed in larger corporations or within industries where companies are closely aligned. By having the same individual on multiple boards, interlocking directors are able to leverage their expertise, experience, and network to benefit the organizations involved. This can lead to knowledge transfer, collaboration, and strategic coordination among the companies they serve.
Interlocking directorships can have both positive and negative implications. On one hand, interlocking directors can foster information sharing, collaboration, and cooperation among companies, helping to align business strategies and create synergies. On the other hand, concerns may arise regarding potential conflicts of interest and the concentration of power in the hands of a few individuals. These concerns may raise questions about the objectivity and independence of interlocking directors, as they may prioritize the interests of one company over another.
Overall, interlocking director denotes the practice of an individual serving as a director on the boards of multiple companies, leading to interconnectedness within the corporate landscape.
Common Misspellings for INTERLOCKING DIRECTOR
- unterlocking director
- jnterlocking director
- knterlocking director
- onterlocking director
- 9nterlocking director
- 8nterlocking director
- ibterlocking director
- imterlocking director
- ijterlocking director
- ihterlocking director
- inrerlocking director
- inferlocking director
- ingerlocking director
- inyerlocking director
- in6erlocking director
- in5erlocking director
- intwrlocking director
- intsrlocking director
- intdrlocking director
- intrrlocking director
Etymology of INTERLOCKING DIRECTOR
The word "interlocking director" is formed by combining the noun "interlocking" and the noun "director". The etymology of both these words is as follows:
1. Interlocking:
The word "interlocking" comes from the verb "interlock", which dates back to the mid-17th century. It is formed by combining the prefix "inter-" (meaning "between" or "among") and the verb "lock". The verb "lock" has Old English roots and can be traced back to the Proto-Germanic word "lukaną". The concept of "interlocking" refers to the action of fitting different elements together, typically in a way that secures or connects them.
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