§425-132 - Effect of partner's dissociation.
§425-132 Effect of partner's dissociation.
(a) If a partner's dissociation results in a dissolution and winding up of the
partnership business, sections 425-138 to 425-144 apply; otherwise, sections
425-133 to 425-137 apply.
(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 425-140;
(2) The partner's duty of loyalty under section
425-123(b)(3) terminates; and
(3) The partner's duty of loyalty under section
425-123(b)(1) and (2) and duty of care under section 425-123(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 425-140. [L 1999, c 284, pt of §1]