Virginia Code 50-73.109: Events causing partner’s dissociation.
A partner is dissociated from a partnership upon the occurrence of any of the following events:
Terms Used In Virginia Code 50-73.109
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Guardian: A person legally empowered and charged with the duty of taking care of and managing the property of another person who because of age, intellect, or health, is incapable of managing his (her) own affairs.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- 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.
- Personal representative: includes the executor of a will or the administrator of the estate of a decedent, the administrator of such estate with the will annexed, the administrator of such estate unadministered by a former representative, whether there is a will or not, any person who is under the order of a circuit court to take into his possession the estate of a decedent for administration, and every other curator of a decedent's estate, for or against whom suits may be brought for causes of action that accrued to or against the decedent. See Virginia Code 1-234
- Trustee: A person or institution holding and administering property in trust.
1. The partnership’s having notice of the partner’s express will to withdraw as a partner on a later date specified by the partner in the notice or, if no later date is specified, the date of notice;
2. An event agreed to in the partnership agreement as causing the partner’s dissociation;
3. The partner’s expulsion pursuant to the partnership agreement;
4. The partner’s expulsion by the unanimous vote of the other partners if:
a. It is unlawful to carry on the partnership business with that partner; or
b. There has been a transfer of all or substantially all of that partner’s transferable interest in the partnership, other than a transfer for security purposes or a court order charging the partner’s interest which, in either case has not been foreclosed.
5. On application by the partnership or another partner, the partner’s expulsion by judicial determination because:
a. The partner engaged in wrongful conduct that adversely and materially affected the partnership business;
b. The partner willfully or persistently committed a material breach of the partnership agreement or of a duty owed to the partnership or the other partners under § 50-73.102; or
c. The partner engaged in conduct relating to the partnership business which makes it not reasonably practicable to carry on the business in partnership with the partner;
6. The partner’s:
a. Becoming a debtor in bankruptcy;
b. Executing an assignment for the benefit of creditors;
c. Seeking, consenting to, or acquiescing in the appointment of a trustee, receiver, or liquidator of that partner or of all or substantially all of that partner’s property; or
d. Failing, within ninety days after the appointment, to have vacated or stayed the appointment of a trustee, receiver, or liquidator of the partner or of all or substantially all of the partner’s property obtained without the partner’s consent or acquiescence, or failing within ninety days after the expiration of a stay to have the appointment vacated;
7. In the case of a partner who is an individual:
a. The partner’s death;
b. The appointment of a guardian, committee or conservator for the partner; or
c. A judicial determination that the partner has otherwise become incapable of performing the partner’s duties under the partnership agreement;
8. In the case of a partner that is a trust or is acting as a partner by virtue of being a trustee of a trust, distribution of the trust’s entire transferable interest in the partnership, but not merely by reason of the substitution of a successor trustee;
9. In the case of a partner that is an estate or is acting as a partner by virtue of being a personal representative of an estate, distribution of the estate’s entire transferable interest in the partnership, but not merely by reason of the substitution of a successor personal representative;
10. Termination of a partner who is not an individual, partnership, corporation, limited liability company, trust, or estate;
11. The expiration of ninety days after the partnership notifies a corporate partner that it will be expelled because it has filed articles of dissolution or the equivalent, its existence has been terminated or its charter has been revoked, or its right to conduct business has been suspended by the jurisdiction of its incorporation, if there is no revocation of the certificate of dissolution or no reinstatement of its existence, its charter or its right to conduct business; or
12. A partnership or limited liability company that is a partner has been dissolved and its business is being wound up.