(a) The initial partners of a partnership are admitted as partners upon the formation of the partnership.
Terms Used In Alabama Code 10A-8A-4.02
Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
person: includes a corporation as well as a natural person. See Alabama Code 1-1-1
(b) After formation, a person is admitted as a partner of the partnership:
(1) as provided in the partnership agreement;(2) as the result of a transaction effective under Article 9 of this chapter or Article 8 of Chapter 1;(3) with the consent of all the partners; or(4) as provided in Section 10A-8A-8.01(6) or 10A-8A-8.01(7).(c) Each person to be admitted as a partner to a partnership formed under either Section 10A-8A-2.01(a)(1) or 10A-8A-2.01(a)(2) may be admitted as a partner without:
(1) acquiring a transferable interest; or(2) making or being obligated to make a contribution to the partnership.
