§ 35-10-510 — Transfer Of Partner's Transferable Interest

35-10-510 . Transfer of partner's transferable interest. (1) A transfer, in whole or in part, of a partner's transferable interest in the partnership:
(a) is permissible;
(b) does not by itself cause a dissolution and winding up of the partnership business; and
(c) does not, as against the other partners or the partnership, entitle the transferee, during the continuance of the partnership, to participate in the management or conduct of the partnership business, to require access to information concerning or an account of partnership transactions, or to inspect or copy the partnership books or records.
(2) A transferee of a partner's transferable interest in the partnership has a right:
(a) to receive, in accordance with the transfer, distributions to which the transferor would otherwise be entitled;
(b) to receive the net amount otherwise distributable to the transferor upon the dissolution and winding up of the partnership business; and
(c) to seek under 35-10-624 (6) a judicial determination that it is equitable to wind up the partnership business.
(3) In a dissolution and winding up, a transferee is entitled to receive an accounting only from the date of the last account agreed to by all of the partners.
(4) Upon transfer, the transferor retains the rights and duties of a partner other than the interest in distributions transferred.
(5) Until receipt of notice of a transfer, a partnership has no duty to give effect to the transferee's rights under this section.

Legislative History

En. Sec. 34, Ch. 238, L. 1993.