§1063. Effect of partner's dissociation
1.
Appreciation of law.
If a partner's dissociation results in a dissolution and winding up of the partnership business, subchapter 8 applies; otherwise, subchapter 7 applies.
[PL 2005, c. 543, Pt. A, §2 (NEW).]
2.
Internal effects of partner's dissociation.
Upon a partner's dissociation:
A.
The partner's right to participate in the management and conduct of the partnership business terminates, except as otherwise provided in section 1083;
[PL 2005, c. 543, Pt. A, §2 (NEW).]
B.
The partner's duty of loyalty under section 1044, subsection 2, paragraph C terminates; and
[PL 2005, c. 543, Pt. A, §2 (NEW).]
C.
The partner's duty of loyalty under section 1044, subsection 2, paragraphs A and B and duty of care under section 1044, subsection 3 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 1083.
[PL 2005, c. 543, Pt. A, §2 (NEW).]
[PL 2005, c. 543, Pt. A, §2 (NEW).]
SECTION HISTORY
PL 2005, c. 543, §A2 (NEW).