Code of Alabama - Title 10A: Alabama Business and Nonprofit Entities Code - Section 10A-9A-3.05 - Limited duties of limited partners

Section 10A-9A-3.05 - Limited duties of limited partners.

(a) Except as otherwise provided in subsection (b), a limited partner does not have any duty to the limited partnership or to any other partner solely by reason of being a limited partner.

(b) A limited partner shall discharge the duties to the limited partnership and the other partners under the partnership agreement and exercise any rights under this chapter or the partnership agreement consistently with the implied contractual covenant of good faith and fair dealing.

(c) A limited partner does not violate a duty or obligation under this chapter or under the partnership agreement merely because the limited partner's conduct furthers the limited partner's own interest.

(Act 2016-379, §1.)

Last modified: May 3, 2021