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Texas Business Organizations Code

§ 152.204 — GENERAL STANDARDS OF PARTNER'S CONDUCT

BO § 152.204Title 4. PARTNERSHIPS · Ch. 152. GENERAL PARTNERSHIPS · Art. D. RELATIONSHIP BETWEEN PARTNERS AND BETWEEN PARTNERS AND PARTNERSHIPS

Statute text

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(a)A partner owes to the partnership, the other partners, and a transferee of a deceased partner's partnership interest as designated in Section 152.406(a)(2):
(1)a duty of loyalty; and
(2)a duty of care.
(b)A partner shall discharge the partner's duties to the partnership and the other partners under this code or under the partnership agreement and exercise any rights and powers in the conduct or winding up of the partnership business:
(1)in good faith; and
(2)in a manner the partner reasonably believes to be in the best interest of the partnership.
…

Legislative history

Acts 2005, 79th Leg., Ch. 64 (H.B. 1319), Sec. 77, eff. January 1, 2006.

Source: Texas Business Organizations Code § 152.204 from the Texas Constitution and Statutes (Texas Legislature) (public record). DecisionDepot is for informational use only and is not legal advice — verify against the official source before relying on this text.