Arizona Laws 29-1053. Effect of partner’s dissociation
A. If a partner‘s dissociation results in a dissolution and winding up of the partnership business, article 8 of this chapter applies. Otherwise, article 7 of this chapter applies.
Terms Used In Arizona Laws 29-1053
- Business: includes every trade, occupation and profession. See Arizona Laws 29-1001
- Partner: means a general partner and, for purposes of article 9 of this chapter, both a general partner and a limited partner. See Arizona Laws 29-1001
- 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 association or entity formed under section 29-1012, a predecessor law or a comparable law of another jurisdiction. See Arizona Laws 29-1001
B. On a partner’s dissociation:
1. The partner’s right to participate in the management and conduct of the partnership business terminates, except as otherwise provided in section 29-1073.
2. The partner’s duty of loyalty under section 29-1034, subsection B, paragraph 3 terminates.
3. The partner’s duty of loyalty under section 29-1034, subsection B, paragraphs 1 and 2 and duty of care under section 29-1034, subsection C continue only with regard to matters arising and events occurring before the partner’s dissociation, unless the partner participates in winding up the partnership’s business pursuant to section 29-1073 in which event those duties continue as to all matters arising and events occurring during the winding up.