California Corporations Code

§ 16701

CORP § 16701 Effective Jan 1, 2008Title 2 · Ch. 5 · Art. 7

Statute text

Except as provided in Section 16701.5, all of the following shall apply:

(a)If a partner is dissociated from a partnership, the partnership shall cause the dissociated partner’s interest in the partnership to be purchased for a buyout price determined pursuant to subdivision (b).

(b)The buyout price of a dissociated partner’s interest is the amount that would have been distributable to the dissociating partner under subdivision (b) of Section 16807 if, on the date of dissociation, the assets of the partnership were sold at a price equal to the greater of the liquidation value or the value based on a sale of the entire business as a going concern without the dissociated partner and the partnership was wound up as of that date. Interest shall be paid from the date of dissociation to the date of payment.

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Legislative history

Amended by Stats. 2007, Ch. 263, Sec. 15. Effective January 1, 2008.