Can subsidiaries have the same client in Texas? What are the conflict of interest implications?

[dh1133]

There is a company that I work for that has three different verticals that offer different political-oriented services. Given the nature of our company, we want to know if two verticals can offer services for the same client/company, and see if there's any conflict of interest issues.

 

[adjusterjack]

Depends on what the services are and how transparent the agreements are.

What, exactly, are the "political-oriented services" of each subsidiary?

 

[zddoodah]

There is a company that I work for that has three different verticals that offer different political-oriented services.

What does "three different verticals" mean? Does it mean "subsidiaries" (the word you used in the subject header of the post)?

Given the nature of our company, we want to know if two verticals can offer services for the same client/company

We have no way of knowing what abilities these other companies have. If you're asking whether there is some law that prohibits entities with a parent/subsidiary relationship from providing similar services to the same client, there isn't. Also, who are "we"?

if there's any conflict of interest issues.

You'd have to tell us what interests are in conflict. What exactly is it that you're concerned about?

 

[quincy]

There is a company that I work for that has three different verticals that offer different political-oriented services. Given the nature of our company, we want to know if two verticals can offer services for the same client/company, and see if there's any conflict of interest issues.

The main purpose of a company having subsidiaries is to expand its operations while limiting its own financial and legal risks.

A subsidiary is a separate legal entity distinct from the parent, or holding, company. It operates independent of the parent. This insulates (to an extent) the parent company from the legal and financial liabilities of its subsidiary. The less interaction or overlap between parent and subsidiary, therefore, the greater protection offered each.

However independent the subsidiary is, the parent company still has controlling interest in it and can, therefore, influence the direction of its subsidiary.

Can a subsidiary offer services to a client of the parent company? Sure, depending on the services and the client and, not unimportantly, the directors in the boardrooms. The best answers you are apt to get are from your company’s board, who will want to contact their legal counsel.