Texas Business Organizations Code 154.203 – Distributions in Kind
Current as of: 2024 | Check for updates
|
Other versions
(a) Except as provided by the partnership agreement, a partner, regardless of the nature of the partner’s contribution, is not entitled to demand or receive from a partnership a distribution in any form other than cash.
(b) Except as provided by the partnership agreement, a partner may not be compelled to accept a disproportionate distribution of an asset in kind from a partnership to the extent that the percentage portion of assets distributed to the partner exceeds the percentage of those assets that equals the percentage in which the partner shares in distributions from the partnership.
Terms Used In Texas Business Organizations Code 154.203
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Contribution: means a tangible or intangible benefit that a person transfers to an entity in consideration for an ownership interest in the entity or otherwise in the person's capacity as an owner or a member. 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