FTC: Section 8 of the Clayton Act requires that a firm's designees to a competitor's board be ...

The FTC has asserted that firms granting themselves rights to designate directors on competitors' boards must ensure those designees are independent, reflecting a strict interpretation of Section 8 of the Clayton Act and Section 5 of the FTC Act. The ruling emerged from Beretta's arrangement to nominate directors at rival Sturm, Ruger & Company, emphasizing that designees must not have recent ties or compensation from the designating firm.