179.0409 Standards of conduct for general partners.

340 words·~2 min read·/wi/chapter-179/179-0409-2

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

(1)A general partner owes to the limited partnership and, subject to s. 179.0901 , the other partners the duties of loyalty and care stated in subs.

(2)and

(3).

(2)The fiduciary duty of loyalty of a general partner includes all of the following duties:

(a)The duty to account to the limited partnership and hold as trustee for it any property, profit, or benefit derived by the general partner in or from any of the following:

1. The conduct or winding up of the partnership’s activities and affairs.

2. A use by the general partner of the partnership’s property.

3. The appropriation of a partnership opportunity.

(b)The duty to refrain from dealing with the partnership in the conduct or winding up of the partnership’s activities and affairs as or on behalf of a person having an interest adverse to the partnership.

(c)The duty to refrain from competing with the partnership in the conduct or winding up of the partnership’s activities and affairs.

(3)The duty of care of a general partner in the conduct or winding up of the limited partnership’s activities and affairs is to refrain from engaging in grossly negligent or reckless conduct or in conduct for which relief or exoneration from liability is not permitted under s. 179.0105

(h).

(4)A general partner shall discharge the duties and obligations under this chapter or under the partnership agreement and exercise any rights thereunder consistently with the contractual obligation of good faith and fair dealing.

(5)A general partner does not violate a duty or obligation under this chapter or under the partnership agreement solely because the general partner’s conduct furthers the general partner’s own interest.

(6)All the partners of a limited partnership, or one or more disinterested partners with authority to act in the matter, may authorize or ratify, after full disclosure of all material facts, a specific act or transaction by a general partner that otherwise would violate the duty of loyalty.