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KRS 362.1-602

Partner's power to dissociate -- Wrongful dissociation

Known as the Kentucky Revised Uniform Partnership Act

The act spans §§ 362.1-1001 to 362.1-975 (90 sections).

Effective: July 12, 2006 History: Created 2006 Ky

(1) A partner has the power to dissociate at any time, rightfully or wrongfully, by express will pursuant to KRS 362.1-601(1).

(2) A partner's dissociation is wrongful only if any of the following apply:

(a) It is in breach of an express provision of the partnership agreement; or (b) In the case of a partnership for a definite term or particular undertaking, before the expiration of the term or the completion of the undertaking if any of the following apply:

1. The partner withdraws by express will, unless the withdrawal follows within ninety (90) days after another partner's dissociation by death or otherwise under KRS 362.1-601(6) to (10) or wrongful dissociation under this subsection;

2. The partner is expelled by judicial determination under KRS 362.1- 601(5);

3. The partner is dissociated by becoming a debtor in bankruptcy; or 4. In the case of a partner who is not an individual, trust other than a business trust, or estate, the partner is expelled or otherwise dissociated because it willfully dissolved or terminated.

(3) A partner who wrongfully dissociates is liable to the partnership and to the other partners for damages caused by the dissociation. The liability is in addition to any other obligation of the partner to the partnership or to the other partners.

Official source: Kentucky General Assembly. Reproduced from public-domain Kentucky statutes; confirm against the official source for the current text. Not legal advice.