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Texas Business Organizations Code

§ 152.506 — LIABILITY OF WITHDRAWN PARTNER TO THIRD PARTY

BO § 152.506Title 4. PARTNERSHIPS · Ch. 152. GENERAL PARTNERSHIPS · Art. G. WITHDRAWAL OF PARTNER

Statute text

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A person who withdraws as a partner in a circumstance that is not an event requiring a winding up of partnership business under Section 11.051 or 11.057 is liable to another party as a partner in a transaction entered into by the partnership or a surviving partnership under Section 10.001 not later than the second anniversary of the date of the partner's withdrawal only if the other party to the transaction:
(1)does not have notice of the partner's withdrawal; and
(2)reasonably believed that the withdrawn partner was a partner at the time of the transaction.

Legislative history

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

Source: Texas Business Organizations Code § 152.506 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.