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Ark. Code Ann. § 4-47-408

General standards of general partner's conduct

Known as the Uniform Limited Partnership Act

The act spans §§ 4–4 (110 sections).

Applied in 1 court decision — leading case Squire Court Partners Ltd. v. Centerline Credit Enhanced Partners LP (In re Squire Court Partners Ltd.) (2017)

Most recently applied in Squire Court Partners Ltd. v. Centerline Credit Enhanced Partners LP (In re Squire Court Partners Ltd.) (July 2017)

Acts 2007, No. 15, § 1.

(1) The only fiduciary duties that a general partner has to the limited partnership and the other partners are the duties of loyalty and care under subsections (b) and (c).

(2) A general partner's duty of loyalty to the limited partnership and the other partners is limited to the following: to account to the limited partnership and hold as trustee for it any property, profit, or benefit derived by the general partner in the conduct and winding up of the limited partnership's activities or derived from a use by the general partner of limited partnership property, including the appropriation of a limited partnership opportunity;

(3) to refrain from dealing with the limited partnership in the conduct or winding up of the limited partnership's activities as or on behalf of a party having an interest adverse to the limited partnership; and

(4) to refrain from competing with the limited partnership in the conduct or winding up of the limited partnership's activities.

(5) A general partner's duty of care to the limited partnership and the other partners in the conduct and winding up of the limited partnership's activities is limited to refraining from engaging in grossly negligent or reckless conduct, intentional misconduct, or a knowing violation of law.

(6) A general partner shall discharge the duties to the partnership and the other partners under this chapter or under the partnership agreement and exercise any rights consistently with the obligation of good faith and fair dealing.

(7) A general partner does not violate a duty or obligation under this chapter or under the partnership agreement merely because the general partner's conduct furthers the general partner's own interests.

Current official text: Arkansas General Assembly. Digitized from the UniCourt Code Improvement Commission public-domain capture. Reproduced from public-domain Arkansas statutes; confirm against the official source for the current text. Not legal advice.