Texas Business Organizations Code

§ 152.503 — WRONGFUL WITHDRAWAL; LIABILITY

BO § 152.503Title 4. PARTNERSHIPS · Ch. 152. GENERAL PARTNERSHIPS · Art. G. WITHDRAWAL OF PARTNER

Statute text

(a)At any time before the occurrence of an event requiring a winding up of partnership business, a partner may withdraw from the partnership and cease to be a partner as provided by Section 152.501.

(b)A partner's withdrawal is wrongful only if:

(1)the withdrawal breaches an express provision of the partnership agreement;

(2)in the case of a partnership that has a period of duration, is for a particular undertaking, or is required under its partnership agreement to wind up the partnership on occurrence of a specified event, before the expiration of the period of duration, the completion of the undertaking, or the occurrence of the event, as appropriate:

(A)the partner withdraws by express will;

(B)the partner withdraws by becoming a debtor in bankruptcy; or

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Legislative history

Acts 2007, 80th Leg., R.S., Ch. 688 (H.B. 1737), Sec. 108, eff. September 1, 2007.