Wisconsin Statutes 178.0503 – Transfer of transferable interest
Current as of: 2023 | Check for updates
|
Other versions
Terms Used In Wisconsin Statutes 178.0503
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Following: when used by way of reference to any statute section, means the section next following that in which the reference is made. See Wisconsin Statutes 990.01
- 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.
- Person: includes all partnerships, associations and bodies politic or corporate. See Wisconsin Statutes 990.01
(1) All of the following apply to a transfer, in whole or in part, of a transferable interest:
(a) It is permissible.
(b) It does not by itself cause a person‘s dissociation as a partner or a dissolution and winding up of the partnership business.
(c) Subject to s. 178.0505, it does not entitle the transferee to do any of the following:
1. Participate in the management or conduct of the partnership’s business.
2. Except as otherwise provided in sub. (3), have access to records or other information concerning the partnership’s business.
(2) A transferee has the right to all of the following:
(a) To receive, in accordance with the transfer, distributions to which the transferor would otherwise be entitled.
(b) To seek under s. 178.0801 (5) a judicial determination that it is equitable to wind up the partnership business.
(3) In a dissolution and winding up of a partnership, a transferee is entitled to an account of the partnership’s transactions only from the date of dissolution.
(4) A partnership need not give effect to a transferee’s rights under this section until the partnership knows or has notice of the transfer.
(5) A transfer of a transferable interest in violation of a valid restriction on transfer contained in the partnership agreement is ineffective if the intended transferee has knowledge or notice of the restriction at the time of transfer.
(6) Except as otherwise provided in s. 178.0601 (4) (b), if a partner transfers a transferable interest, the transferor retains the rights of a partner other than the transferable interest transferred and retains all the duties and obligations of a partner.
(7) If a partner transfers a transferable interest to a person that becomes a partner with respect to the transferred interest, the transferee is liable for the partner’s obligations under ss. 178.0404 and 178.0407 known to the transferee when the transferee becomes a partner.