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MenuFunding a business through another business has legal implications. You need to take care of few things here
1. Ensure the micro school is listed as a subsidiary
2. The funding business is the corporate parent and conglomerate which has rights to distribute funds between its subsidiaries. If not , then you need to create a parent structure first . Eg: Alphabet funding Google business.
3. There is disclosure about this funding and you allocate part of your funds so that school has continued funding
4. Make a resolution with your board of directors and make this part of your regulatory filing
5. If the school is not for profit , then you can consider doing this as a CSR activity . You need a board resolution passed even for this.
Please ensure proper corporate governance is maintained.
Hope this helps . Happy to get On a call if you need more info.
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