Code of Alabama - Title 10A: Alabama Business and Nonprofit Entities Code - Section 10A-8A-6.03 - Effect of partner's dissociation

Section 10A-8A-6.03 - Effect of partner's dissociation.

(a) If a person's dissociation results in a dissolution and winding up of the partnership business or not for profit activity, Article 8 applies; otherwise, Article 7 applies.

(b) Upon a person's dissociation as a partner:

(1) the person's right to participate in the management and conduct of the partnership business or not for profit activity terminates, except as provided in Section 10A-8A-8.03;

(2) the person's duty of loyalty under Section 10A-8A-4.11(b)(3) terminates; and

(3) the person's duty of loyalty under Section 10A-8A-4.11(b)(1) and (2) and duty of care under Section 10A-8A-4.11(c) continue only with regard to matters arising and events occurring before the person's dissociation, unless the partner participates in winding up the partnership's business or not for profit activity pursuant to Section 10A-8A-8.03.

(Act 2018-125, §7.)

Last modified: May 3, 2021