Kentucky Statutes 362.1-603 – Effect of partner’s dissociation
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(1) If a partner’s dissociation results in a dissolution and winding up of the partnership business, then KRS § 362.1-801 to KRS § 362.1-807 apply; otherwise, KRS § 362.1-701 to
362.1-705 apply.
(2) Upon a partner’s dissociation, the dissociating partner’s:
(a) Right to participate in the management and conduct of the partnership business terminates, except as otherwise provided in KRS § 362.1-803;
(b) Duty of loyalty under KRS § 362.1-404(2)(c) terminates; and
(c) Duty of loyalty under KRS § 362.1-404(2)(a) and (b) and duty of care under KRS § 362.1-404(3) 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 KRS § 362.1-803.
Effective: July 12, 2006
History: Created 2006 Ky. Acts ch. 149, sec. 48, effective July 12, 2006.
362.1-705 apply.
Terms Used In Kentucky Statutes 362.1-603
- Business: includes every trade, occupation, and profession. See Kentucky Statutes 362.1-101
- 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 (2) or more persons to carry on as co- owners a business for profit formed under KRS §. See Kentucky Statutes 362.1-101
(2) Upon a partner’s dissociation, the dissociating partner’s:
(a) Right to participate in the management and conduct of the partnership business terminates, except as otherwise provided in KRS § 362.1-803;
(b) Duty of loyalty under KRS § 362.1-404(2)(c) terminates; and
(c) Duty of loyalty under KRS § 362.1-404(2)(a) and (b) and duty of care under KRS § 362.1-404(3) 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 KRS § 362.1-803.
Effective: July 12, 2006
History: Created 2006 Ky. Acts ch. 149, sec. 48, effective July 12, 2006.