Delaware Code Title 6 Sec. 15-603 – Effect of partner’s dissociation
(a) If a partner‘s dissociation results in a dissolution and winding up of the partnership business, subchapter VIII of this chapter applies; otherwise, subchapter VII of this chapter applies.
Terms Used In Delaware Code Title 6 Sec. 15-603
- Business: includes every trade, occupation and profession, the holding or ownership of property and any other activity for profit. See Delaware Code Title 6 Sec. 15-101
- Partner: means a person who is admitted to a partnership as a partner of the partnership. See Delaware Code Title 6 Sec. 15-101
- Partnership: means an association of 2 or more persons formed under § 15-202 of this title, predecessor law or comparable law of another jurisdiction to carry on any business, purpose or activity. See Delaware Code Title 6 Sec. 15-101
- 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.
(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 otherwise provided in § 15-803 of this title;
(2) the partner’s duty of loyalty under § 15-404(b)(3) of this title terminates; and
(3) the partner’s duty of loyalty under § 15-404(b)(1) and (2) of this title and duty of care under § 15-404(c) of this title 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 § 15-803 of this title.