Texas Business Organizations Code 152.404 – Rights and Duties of Transferee
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(a) A transferee of a partner‘s partnership interest is entitled to receive, to the extent transferred, distributions to which the transferor otherwise would be entitled.
(b) If an event requires a winding up of partnership business under Subchapter I, a transferee is entitled to receive, to the extent transferred, the net amount otherwise distributable to the transferor.
Terms Used In Texas Business Organizations Code 152.404
- Business: means a trade, occupation, profession, or other commercial activity. See Texas Business Organizations Code 1.002
- Partner: means a limited partner or general partner. See Texas Business Organizations Code 1.002
- 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.
- Partnership: means an entity governed as a partnership under Title 4. See Texas Business Organizations Code 1.002
(c) Until a transferee becomes a partner, the transferee does not have liability as a partner solely as a result of the transfer.
(d) For a proper purpose the transferee may require reasonable information or an account of a partnership transaction and make reasonable inspection of the partnership books. In a winding up of partnership business, a transferee may require an accounting only from the date of the latest account agreed to by all of the partners.
(e) Until receipt of notice of a transfer, a partnership is not required to give effect to a transferee’s rights under this section and Sections 152.401-152.403.