§ 29-604.05 — Distributions in kind; sharing of and right to distribution before dissolution.

District of Columbia § 29-604.05

• Jurisdiction: District of Columbia
• Title 29: Business Organizations. [Enacted title]
• Ch. 6: General Partnerships.
• Subch. IV: Relations of Partners to Each Other and to Partnership.

Text

(a) Any distributions made by a partnership before its dissolution and winding up must be in equal shares among partners, except to the extent necessary to comply with a transfer effective under § 29-605.03 or charging order in effect under § 29-605.04 .

(b) A person has a right to a distribution before the dissolution and winding up of a partnership only if the partnership decides to make an interim distribution.

(c) A person does not have a right to demand or receive a distribution from a partnership in any form other than money. Except as otherwise provided in § 29-608.09 , a partnership may distribute an asset in kind only if each part of the asset is fungible with each other part and each person receives a percentage of the asset equal in value to the person’s share of distributions.

(d) If a partner or transferee becomes entitled to receive a distribution, the partner or transferee has the status of, and is entitled to all remedies available to, a creditor of the partnership with respect to the distribution. However, the partnership’s obligation to make a distribution is subject to offset for any amount owed to the partnership by the partner or a person dissociated as partner on whose account the distribution is made.

Legislative History

Mar. 5, 2013, D.C. Law 19-210, § 2(f)(4)(D), 59 DCR 13171