31 §1053. Transfer of partner's transferable interest
Title 31: PARTNERSHIPS AND ASSOCIATIONS
Chapter 17: UNIFORM PARTNERSHIP ACT HEADING: PL 2005, C. 543, PT. A, §2 (NEW)
Subchapter 5: TRANSFEREES AND CREDITORS OF PARTNER HEADING: PL 2005, C. 543, PT. A, §2 (NEW)
§1053. Transfer of partner's transferable interest
1. Transfer of interest. A transfer, in whole or in part, of a partner's transferable interest in the partnership:
A. Is permissible; [2005, c. 543, Pt. A, §2 (NEW).]
B. Does not by itself cause the partner's dissociation or a dissolution and winding up of the partnership business; and [2005, c. 543, Pt. A, §2 (NEW).]
C. Does not, as against the other partners or the partnership, entitle the transferee, during the continuance of the partnership, to participate in the management or conduct of the partnership business, to require access to information concerning partnership transactions or to inspect or copy the partnership books or records. [2005, c. 543, Pt. A, §2 (NEW).]
[ 2005, c. 543, Pt. A, §2 (NEW) .]
2. Transferee of partner's interest. A transferee of a partner's transferable interest in the partnership has a right:
A. To receive, in accordance with the transfer, distributions to which the transferor would otherwise be entitled; [2005, c. 543, Pt. A, §2 (NEW).]
B. To receive upon the dissolution and winding up of the partnership business, in accordance with the transfer, the net amount otherwise distributable to the transferor; and [2005, c. 543, Pt. A, §2 (NEW).]
C. To seek under section 1081, subsection 6, a judicial determination that it is equitable to wind up the partnership business. [2005, c. 543, Pt. A, §2 (NEW).]
[ 2005, c. 543, Pt. A, §2 (NEW) .]
3. Account of transaction to transferee. In a dissolution and winding up, a transferee is entitled to an account of partnership transactions only from the date of the latest account agreed to by all of the partners.
[ 2005, c. 543, Pt. A, §2 (NEW) .]
4. Rights and duties retained. Upon transfer, the transferor retains the rights and duties of a partner other than the interest in distributions transferred.
[ 2005, c. 543, Pt. A, §2 (NEW) .]
5. Effect to transferee's rights; notice. A partnership need not give effect to a transferee's rights under this section until the partnership has notice of the transfer.
[ 2005, c. 543, Pt. A, §2 (NEW) .]
6. Transfer in violations. A transfer of a partner's transferable interest in the partnership in violation of a restriction on transfer contained in the partnership agreement is ineffective as to a person having notice of the restriction at the time of transfer.
[ 2005, c. 543, Pt. A, §2 (NEW) .]
SECTION HISTORY
2005, c. 543, §A2 (NEW).