Texas Business Organizations Code 152.602 – Redemption Price
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(a) Except as provided by Subsection (b) , the redemption price of a withdrawn partner‘s partnership interest is the fair value of the interest on the date of withdrawal.
(b) The redemption price of the partnership interest of a partner who wrongfully withdraws before the expiration of the partnership’s period of duration, the completion of a particular undertaking, or the occurrence of a specified event requiring a winding up of partnership business is the lesser of:
(1) the fair value of the withdrawn partner’s partnership interest on the date of withdrawal; or
(2) the amount that the withdrawn partner would have received if an event requiring a winding up of partnership business had occurred at the time of the partner’s withdrawal.
Terms Used In Texas Business Organizations Code 152.602
- 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
- Partnership interest: means a partner's interest in a partnership. See Texas Business Organizations Code 1.002
(c) Interest is payable on the amount owed under this section.