Section 10-704 - Death, incompetency, insolvency, or termination of a general partner.
§ 10-704. Death, incompetency, insolvency, or termination of a general partner.
(a) Becomes a limited partner.- Unless otherwise provided in the partnership agreement:
(1) If a general partner who is an individual dies or a court of competent jurisdiction adjudges the individual to be incompetent to manage his person or his property, the partner's executor, personal representative, administrator, guardian, conservator, or other legal representative shall automatically become a limited partner;
(2) If a general partner is a corporation, estate, trust, partnership, or other entity and is dissolved or terminated, its legal representative or successor shall automatically become a limited partner;
(3) If a general partner withdraws under § 10-402(3) of this title or permits an act specified in § 10-402(4) of this title, that partner shall automatically become a limited partner.
(b) Allocable share.- The allocable share of the profits, losses, and distributions of a general partner who becomes a limited partner under this section is the same as it was prior to the event specified in subsection (a) of this section.
[1981, ch. 801, § 2; 2007, ch. 5, § 7.]