Section 10-8A-603 Effect of partner's dissociation. - Alabama Statutes

Section 10-8A-603

Effect of partner's dissociation.

(a) If a partner's dissociation results in a dissolution and winding up of the partnership business, Article 8 applies; otherwise, Article 7 applies.

(b) Upon a partner's dissociation:

(1) the partner's right to participate in the management and conduct of the partnership business terminates, except as provided in Section 10-8A-803;

(2) the partner's duty of loyalty under Section 10-8A-404(b)(3) terminates; and

(3) the partner's duty of loyalty under Section 10-8A-404(b)(1) and (2) and duty of care under Section 10-8A-404(c) continue only with regard to matters arising and events occurring before the partner's dissociation, unless the partner participates in winding up the partnership's business pursuant to Section 10-8A-803.

(Acts 1996, No. 96-528, p. 685, §1.)