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Texas Business Organizations Code

§ 152.404 — RIGHTS AND DUTIES OF TRANSFEREE

BO § 152.404Title 4. PARTNERSHIPS · Ch. 152. GENERAL PARTNERSHIPS · Art. F. TRANSFER OF PARTNERSHIP INTERESTS

Statute text

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(a)A transferee of a partner's partnership interest is entitled to receive, to the extent transferred, distributions to which the transferor otherwise would be entitled.
(b)If an event requires a winding up of partnership business under Subchapter I, a transferee is entitled to receive, to the extent transferred, the net amount otherwise distributable to the transferor.
(c)Until a transferee becomes a partner, the transferee does not have liability as a partner solely as a result of the transfer.
(d)For a proper purpose the transferee may require reasonable information or an account of a partnership transaction and make reasonable inspection of the partnership books. In a winding up of partnership business, a transferee may require an accounting only from the date of the latest account agreed to by all of the partners.
(e)Until receipt of notice of a transfer, a partnership is not required to give effect to a transferee's rights under this section and Sections 152.401-152.403.

Legislative history

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

Source: Texas Business Organizations Code § 152.404 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.