Texas Business Organizations Code - Section 152.204. General Standards Of Partner's Conduct
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Texas Lawyer > Business Organizations Code > Texas Business Organizations Code - Section 152.204. General Standards Of Partner's Conduct
§ 152.204. GENERAL STANDARDS OF PARTNER'S CONDUCT. (a) A
partner owes to the partnership, the other partners, and a
transferee of a deceased partner's partnership interest as
designated in Section 152.406(a)(2):
(1) a duty of loyalty; and
(2) a duty of care.
(b) A partner shall discharge the partner's duties to the
partnership and the other partners under this code or under the
partnership agreement and exercise any rights and powers in the
conduct or winding up of the partnership business:
(1) in good faith; and
(2) in a manner the partner reasonably believes to be
in the best interest of the partnership.
(c) A partner does not violate a duty or obligation under
this chapter or under the partnership agreement merely because the
partner's conduct furthers the partner's own interest.
(d) A partner, in the partner's capacity as partner, is not
a trustee and is not held to the standards of a trustee.
Acts 2003, 78th Leg., ch. 182, § 1, eff. Jan. 1, 2006. Amended by
Acts 2005, 79th Leg., ch. 64, § 77, eff. Jan. 1, 2006.
Section: 152.055 152.056 152.101 152.102 152.201 152.202 152.203 152.204 152.205 152.206 152.207 152.208 152.209 152.210 152.211
Last modified: August 11, 2007
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