56a-601. Events causing partner's dissociation. - Kansas Statutes

56a-601

Chapter 56a.--KANSAS UNIFORM PARTNERSHIP ACT Article 6.--PARTNER'S DISSOCIATION

      56a-601.   Events causing partner'sdissociation.A partner is dissociated from a partnership uponthe occurrence of any of the following events:

      (a)   The partnership's having notice of the partner'sexpress will to withdraw as a partner or on a later date specifiedby the partner;

      (b)   an event agreed to in the partnership agreement ascausing the partner's dissociation;

      (c)   the partner's expulsion pursuant to the partnershipagreement;

      (d)   the partner's expulsion by the unanimous vote of theother partners if:

      (1)   It is unlawful to carry on the partnershipbusiness with that partner;

      (2)   there has been a transfer of all orsubstantially all of that partner's transferable interest in thepartnership, other than a transfer for security purposes, or acourt order charging the partner's interest, which has not beenforeclosed;

      (3)   within 90 days after the partnership notifiesa corporate partner that it will be expelled because it has fileda certificate of dissolution or the equivalent, its charter hasbeen revoked, or its right to conduct business has been suspendedby the jurisdiction of its incorporation, there is no revocation ofthe certificate of dissolution or no reinstatement of its charteror its right to conduct business; or

      (4)   a partnership that is a partner has beendissolved and its business is being wound up;

      (e)   on application by the partnership or another partner,the partner's expulsion by judicial determination because:

      (1)   The partner engaged in wrongful conduct thatadversely and materially affected the partnership business;

      (2)   the partner willfully or persistently committeda material breach of the partnership agreement or of a duty owed tothe partnership or the other partners under K.S.A. 56a-404; or

      (3)   the partner engaged in conduct relating to thepartnership business which makes it not reasonably practicable tocarry on the business in partnership with the partner;

      (f)   the partner's:

      (1)   Becoming a debtor in bankruptcy;

      (2)   executing an assignment for the benefit ofcreditors;

      (3)   seeking, consenting to, or acquiescing in theappointment of a trustee, receiver, or liquidator of that partneror of all or substantially all of that partner's property; or

      (4)   failing, within 90 days after the appointment,to have vacated or stayed the appointment of a trustee, receiver,or liquidator of the partner or of all or substantially all of thepartner's property obtained without the partner's consent oracquiescence, or failing within 90 days after the expiration of astay to have the appointment vacated;

      (g)   in the case of a partner who is an individual:

      (1)   The partner's death;

      (2)   the appointment of a guardian or generalconservator for the partner; or

      (3)   a judicial determination that the partner hasotherwise become incapable of performing the partner's duties underthe partnership agreement;

      (h)   in the case of a partner that is a trust or is actingas a partner by virtue of being a trustee of a trust, distributionof the trust's entire transferable interest in the partnership, butnot merely by reason of the substitution of a successor trustee;

      (i)   in the case of a partner that is an estate or isacting as a partner by virtue of being a personal representative ofan estate, distribution of the estate's entire transferableinterest in the partnership, but not merely by reason of thesubstitution of a successor personal representative; or

      (j)   termination of a partner who is not an individual,partnership, corporation, trust, or estate.

      History:   L. 1998, ch. 93, § 30; Jan. 1, 1999.