New Mexico Statutes 54-1A-603. Effect of partner’s dissociation
(a) 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 New Mexico Statutes 54-1A-603
- 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 Section 803 [54-1A- 803 NMSA 1978];
(2) the partner’s duty of loyalty under Section 404(b)(3) [54-1A-404(b)(3) NMSA 1978] terminates; and
(3) the partner’s duty of loyalty under Section 404(b)(1) and (2) [54-1A- 404(b)(1) and (2) NMSA 1978] and duty of care under Section 404(c) [54-1A-404(c) NMSA 1978] 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 803.