Iowa Code 486A.103 – Effect of partnership agreement — nonwaivable provisions
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1. Except as otherwise provided in subsection 2, relations among the partners and between the partners and the partnership are governed by the partnership agreement. To the extent the partnership agreement does not otherwise provide, this chapter governs relations among the partners and between the partners and the partnership.
Terms Used In Iowa Code 486A.103
- Business: includes every trade, occupation, and profession. See Iowa Code 486A.101
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- Limited liability partnership: means a partnership that has filed a statement of qualification under section 486A. See Iowa Code 486A.101
- 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.
- 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 of two or more persons to carry on as co-owners a business for profit formed under section 486A. See Iowa Code 486A.101
- Partnership agreement: means the agreement, whether written, oral, or implied, among the partners concerning the partnership, including amendments to the partnership agreement. See Iowa Code 486A.101
2. The partnership agreement shall not do any of the following:
a. Vary the rights and duties under section 486A.105 except to eliminate the duty to provide copies of statements to all of the partners.
b. Unreasonably restrict the right of access to books and records under section 486A.403, subsection 2.
c. Eliminate the duty of loyalty under section 486A.404, subsection 2, or 486A.603, subsection 2, paragraph “c”, except as follows:
(1) The partnership agreement may identify specific types or categories of activities that do not violate the duty of loyalty, if not manifestly unreasonable.
(2) All of the partners or a number or percentage specified in the partnership agreement may authorize or ratify, after full disclosure of all material facts, a specific act or transaction that otherwise would violate the duty of loyalty.
d. Unreasonably reduce the duty of care under section 486A.404, subsection 3, or 486A.603, subsection 2, paragraph “c”.
e. Eliminate the obligation of good faith and fair dealing under section 486A.404, subsection 4, but the partnership agreement may prescribe the standards by which the performance of the obligation is to be measured, if the standards are not manifestly unreasonable.
f. Vary the power to dissociate as a partner under section 486A.602, subsection 1, except to require the notice under section 486A.601, subsection 1, to be in writing.
g. Vary the right of a court to expel a partner in the events specified in section 486A.601, subsection 5.
h. Vary the requirement to wind up the partnership business in cases specified in section 486A.801, subsection 4, 5, or 6.
i. Vary the law applicable to a limited liability partnership under section 486A.106, subsection 2.
j. Restrict rights of third parties under this chapter.