In this paper, we use state space approach to give a sufficient condition for internal stability of the closed loop system when the centralized stabilizing controller is implemented in a distributive manner. Using this condition, we show that the centralized stabilizing controller for a 2-nest system can be split into two sub-controllers without affecting the internal stability. The effect of sub-controller to sub-controller communication noise on the performance is considered along with the constraint on strength of sub-controller to sub-controller communication signal. We take an input-output approach. In a 2-nest case, we obtain a sufficient condition for splitting the stabilizing controller such that the overall performance optimization can be cast as a convex problem in the Youla-Kucera parameter Q. We also present an architecture for distributive implementation of banded structure controllers such that all closed loop maps are affine in Q.