Section 488.605 - Effect of dissociation as general partner.

IA Code § 488.605 (2019) (N/A)

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488.605 Effect of dissociation as general partner.

1. Upon a person’s dissociation as a general partner, all of the following apply:

a. The person’s right to participate as a general partner in the management and conduct of the partnership’s activities terminates.

b. The person’s duty of loyalty as a general partner under section 488.408, subsection 2, paragraph “c”, terminates.

c. The person’s duty of loyalty as a general partner under section 488.408, subsection 2, paragraphs “a” and “b”, and duty of care under section 488.408, subsection 3, continue only with regard to matters arising and events occurring before the person’s dissociation as a general partner.

d. The person may sign and deliver to the secretary of state for filing a statement of dissociation pertaining to the person and, at the request of the limited partnership, shall sign an amendment to the certificate of limited partnership which states that the person has dissociated.

e. Subject to section 488.704 and article 11, any transferable interest owned by the person immediately before dissociation in the person’s capacity as a general partner is owned by the person as a mere transferee.

2. A person’s dissociation as a general partner does not of itself discharge the person from any obligation to the limited partnership or the other partners which the person incurred while a general partner.

2004 Acts, ch 1021, §56, 118

Referred to in §488.204

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