Kentucky Statutes 362.2-604 – Person’s power to dissociate as general partner — Wrongful dissociation
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(1) A person has the power to dissociate as a general partner at any time, rightfully or wrongfully, by express will pursuant to KRS § 362.2-603(1).
(2) A person’s dissociation as a general partner is wrongful only if:
(a) It is in breach of an express provision of the partnership agreement; or
(b) It occurs before the termination of the limited partnership and:
1. The person withdraws as a general partner by express will;
2. The person is expelled as a general partner by judicial determination under KRS § 362.2-603(5);
3. The person is dissociated as a general partner by becoming a debtor in bankruptcy; or
4. In the case of a person that is not an individual, trust other than a business trust, or estate, the person is expelled or otherwise dissociated as a general partner because it willfully dissolved or terminated.
(3) A person that wrongfully dissociates as a general partner is liable to the limited partnership and, subject to KRS § 362.2-931, to the other partners for damages caused by the dissociation. The liability is in addition to any other obligation of the general partner to the limited partnership or to the other partners.
Effective: July 12, 2006
History: Created 2006 Ky. Acts ch. 149, sec. 141, effective July 12, 2006.
(2) A person’s dissociation as a general partner is wrongful only if:
Terms Used In Kentucky Statutes 362.2-604
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- Business trust: includes , except when utilized in KRS Chapter 386, a "statutory trust" as organized under KRS Chapter 386A. See Kentucky Statutes 446.010
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- General partner: means :
(a) With respect to a limited partnership, a person that:
1. See Kentucky Statutes 362.2-102 - Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Partner: means a limited partner or general partner. See Kentucky Statutes 362.2-102
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Partnership: includes both general and limited partnerships. See Kentucky Statutes 446.010
- Person: means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government, governmental subdivision, agency, or instrumentality, or any other legal or commercial entity. See Kentucky Statutes 362.2-102
(a) It is in breach of an express provision of the partnership agreement; or
(b) It occurs before the termination of the limited partnership and:
1. The person withdraws as a general partner by express will;
2. The person is expelled as a general partner by judicial determination under KRS § 362.2-603(5);
3. The person is dissociated as a general partner by becoming a debtor in bankruptcy; or
4. In the case of a person that is not an individual, trust other than a business trust, or estate, the person is expelled or otherwise dissociated as a general partner because it willfully dissolved or terminated.
(3) A person that wrongfully dissociates as a general partner is liable to the limited partnership and, subject to KRS § 362.2-931, to the other partners for damages caused by the dissociation. The liability is in addition to any other obligation of the general partner to the limited partnership or to the other partners.
Effective: July 12, 2006
History: Created 2006 Ky. Acts ch. 149, sec. 141, effective July 12, 2006.