Texas Business Organizations Code 152.705 – Partner’s Liability to Other Partners After Event Requiring Winding Up
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(a) Except as provided by Subsection (b), after the occurrence of an event requiring winding up of the partnership business, the losses with respect to which a partner must contribute under § 152.708(a) include losses from a liability incurred under § 152.704.
(b) A partner who incurs, with notice that an event requiring a winding up of the partnership business has occurred, a partnership liability under § 152.704(2) by an act that is not appropriate for winding up is liable to the partnership for a loss caused to the partnership arising from that liability.
Terms Used In Texas Business Organizations Code 152.705
- Business: means a trade, occupation, profession, or other commercial activity. See Texas Business Organizations Code 1.002
- Partner: means a limited partner or general partner. See Texas Business Organizations Code 1.002
- 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: means an entity governed as a partnership under Title 4. See Texas Business Organizations Code 1.002