29-1051. Events causing partner's dissociation
A partner is dissociated from a partnership on the occurrence of any of the following events:
1. The partnership's having notice of the partner's express will to withdraw as a partner or on a later date specified by the partner.
2. An event agreed to in the partnership agreement as causing the partner's dissociation.
3. The partner's expulsion pursuant to the partnership agreement.
4. The partner's expulsion by the unanimous vote of the other partners if either:
(a) It is unlawful to carry on the partnership business with that partner.
(b) There has been a transfer of all or substantially all of that partner's transferable interest in the partnership, other than a transfer for security purposes that has not been foreclosed, or a court order charging the partner's interest, that has not been foreclosed.
(c) Within ninety days after the partnership notifies a corporate partner that it will be expelled because it has filed a certificate of dissolution or the equivalent, its charter has been revoked or its right to conduct business has been suspended by the jurisdiction of its incorporation, there is no revocation of the certificate of dissolution or no reinstatement of its charter or its right to conduct business.
(d) A partnership, limited partnership or limited liability company that is a partner has been dissolved and its business is being wound up.
5. On application by the partnership or another partner, the partner's expulsion by judicial determination because either:
(a) The partner engaged in wrongful conduct that adversely and materially affected the partnership business.
(b) The partner wilfully or persistently committed a material breach of the partnership agreement or of a duty owed to the partnership or the other partners under section 29-1034.
(c) The partner engaged in conduct relating to the partnership business that makes it not reasonably practicable to carry on the business in partnership with the partner.
6. The partner either:
(a) Becomes a debtor in bankruptcy.
(b) Executes an assignment for the benefit of creditors.
(c) Seeks, consents to or acquiesces in the appointment of a trustee, receiver or liquidator of that partner or of all or substantially all of that partner's property.
(d) Fails, within ninety days after the appointment, to have vacated or stayed the appointment of a trustee, receiver or liquidator of the partner or of all or substantially all of the partner's property obtained without the partner's consent or acquiescence, or fails within ninety days after the expiration of a stay to have the appointment vacated.
7. In the case of a partner who is an individual either:
(a) The partner's death.
(b) The appointment of a guardian or general conservator for the partner.
(c) A judicial determination that the partner has otherwise become incapable of performing the partner's duties under the partnership agreement.
8. In the case of a partner that is a trust or is acting as a partner by virtue of being a trustee of a trust, distribution of the trust's entire transferable interest in the partnership, but not merely by reason of the substitution of a successor trustee.
9. In the case of a partner that is an estate or that is acting as a partner by virtue of being a personal representative of an estate, distribution of the estate's entire transferable interest in the partnership, but not merely by reason of the substitution of a successor personal representative.
10. Termination of a partner's existence.
Section: Previous 29-1034 29-1035 29-1036 29-1041 29-1042 29-1043 29-1044 29-1051 29-1052 29-1053 29-1061 29-1062 29-1063 29-1064 29-1065 NextLast modified: October 13, 2016