Iowa Code 486A.603 – Effect of partner’s dissociation
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1. If a partner’s dissociation results in a dissolution and winding up of the partnership business, article 8 applies; otherwise, article 7 applies.
Terms Used In Iowa Code 486A.603
- Business: includes every trade, occupation, and profession. See Iowa Code 486A.101
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- Partnership: means an association of two or more persons to carry on as co-owners a business for profit formed under section 486A. See Iowa Code 486A.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.
2. Upon a partner’s dissociation all of the following apply:
a. The partner’s right to participate in the management and conduct of the partnership business terminates, except as otherwise provided in section 486A.803.
b. The partner’s duty of loyalty under section 486A.404, subsection 2, paragraph “c”, terminates.
c. The partner’s duty of loyalty under section 486A.404, subsection 2, paragraphs “a” and “b”, and duty of care under section 486A.404, 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 486A.803.