Texas Business Organizations Code

§ 152.205 — PARTNER'S DUTY OF LOYALTY

BO § 152.205Title 4. PARTNERSHIPS · Ch. 152. GENERAL PARTNERSHIPS · Art. D. RELATIONSHIP BETWEEN PARTNERS AND BETWEEN PARTNERS AND PARTNERSHIPS

A partner's duty of loyalty includes:

(1)accounting to and holding for the partnership property, profit, or benefit derived by the partner:

(A)in the conduct and winding up of the partnership business; or

(B)from use by the partner of partnership property;

(2)refraining from dealing with the partnership on behalf of a person who has an interest adverse to the partnership; and

(3)refraining from competing or dealing with the partnership in a manner adverse to the partnership.

Legislative history

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.