§425-131 Partner's power to dissociate; wrongful dissociation.

214 words·~1 min read·/hi/chapter-425/425-131

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)A partner has the power to dissociate at any time, rightfully or wrongfully, by express will pursuant to section 425-130(1).

(b)A partner's dissociation is wrongful only if:

(1)It is in breach of an express provision of the partnership agreement; or

(2)In the case of a partnership for a definite term or particular undertaking, before the expiration of the term or the completion of the undertaking:

(A)The partner withdraws by express will, unless the withdrawal follows within ninety days after another partner's dissociation by death or otherwise under section 425-130(6) to

(10)or wrongful dissociation under this subsection;

(B)The partner is expelled by judicial determination under section 425-130(5);

(C)The partner is dissociated by becoming a debtor in bankruptcy; or

(D)In the case of a partner who is not an individual, trust other than a business trust, or estate, the partner is expelled or otherwise dissociated because it wilfully dissolved or terminated.

(c)A partner who wrongfully dissociates is liable to the partnership and to the other partners for damages caused by the dissociation. The liability is in addition to any other obligation of the partner to the partnership or to the other partners. [L 1999, c 284, pt of §1]