Texas Business Organizations Code 152.707 – Settlement of Accounts
Current as of: 2024 | Check for updates
|
Other versions
(a) Each partner is entitled to a settlement of all partnership accounts on winding up the partnership business.
(b) In settling accounts among the partners, the partnership interest of a withdrawn partner that is redeemed under § 152.610 is credited with a share of any profits for the period after the partner’s withdrawal but is charged with a share of losses for that period only to the extent of profits credited for that period.
Terms Used In Texas Business Organizations Code 152.707
- 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
- Property: includes tangible and intangible property and an interest in that property. See Texas Business Organizations Code 1.002
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- Share: means a unit into which the ownership interest in a for-profit corporation, professional corporation, real estate investment trust, or professional association is divided, regardless of whether the share is certificated or uncertificated. See Texas Business Organizations Code 1.002
(c) The profits and losses that result from the liquidation of the partnership property must be credited and charged to the partners’ capital accounts.
(d) The partnership shall make a distribution to a partner in an amount equal to that partner’s positive balance in the partner’s capital account. Except as provided by § 152.304(b) or 152.801, a partner shall contribute to the partnership an amount equal to that partner’s negative balance in the partner’s capital account.