SEC. 79-13-603. Effect of partner's dissociation.
(a) If a partner's dissociation results in a dissolution and winding up of the partnership business, Article 8 applies; otherwise, Article 7 applies.
(b) Upon a partner's dissociation:
(1) The partner's right to participate in the management and conduct of the partnership business terminates, except as otherwise provided in Section 79-13-803;
(2) The partner's duty of loyalty under Section 79-13-404(b)(3) terminates; and
(3) The partner's duty of loyalty under Section 79-13-404(b)(1) and (2) and duty of care under Section 79-13-404(c) continue only with regard to matters arising and events occurring before the partner's dissociation, unless the partner participates in winding up the partnership's business pursuant to Section 79-13-803.
SOURCES: Laws, 2004, ch. 458, § 603, SB 2504, eff from and
after Jan. 1, 2005.
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