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Texas Business Organizations Code

§ 152.206 — PARTNER'S DUTY OF CARE

BO § 152.206Title 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's duty of care to the partnership and the other partners is to act in the conduct and winding up of the partnership business with the care an ordinarily prudent person would exercise in similar circumstances.
(b)An error in judgment does not by itself constitute a breach of the duty of care.
(c)A partner is presumed to satisfy the duty of care if the partner acts on an informed basis and in compliance with Section 152.204(b).

Legislative history

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

Source: Texas Business Organizations Code § 152.206 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.