The boards of insurance companies frequently have board members who also served on the boards of drug and medical device companies. this phenomenon is referred to as interlocking directorates.
The interlocking directorate is a type of practice in which the member of the board of directors of the company is also a member of the board of directors or management of the other company.
In such type of practice, it is possible that both the company are not working autonomously but rather in an informal cartel. Under the antitrust legislation, this practice is illegal.
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