[londons_explore]

They need to make decisions in the best interest of Company 1 and Company 2 separately.

An action done on behalf of Company 1 which slightly hurts company 1 but provides large gains to company 2 would be illegal (unless they can argue that it was part of a larger strategy to benefit company 1).

[croon]

I assume the owners of Company 1 would need to bring the case, and if they're also the owners of Company 2 they would never want to.