§ 61-3-407 — Rights to information of general partner and person dissociated as general partner

Tennessee § 61-3-407

• Jurisdiction: Tennessee
• Title: 61

Text

(a) A general partner may inspect and copy required information during regular business hours in the limited partnership's principal office, without having any particular purpose for seeking the information. (b) On reasonable notice, a general partner may inspect and copy during regular business hours, at a reasonable location specified by the limited partnership, any record maintained by the partnership regarding the partnership's activities, affairs, financial condition, and other circumstances, to the extent the information is material to the general partner's rights and duties under the partnership agreement or this chapter. (c) A limited partnership shall furnish to each general partner: (1) Without demand, any information concerning the partnership's activities, affairs, financial condition, and other circumstances that the partnership knows and is material to the proper exercise of the general partner's rights and duties under the partnership agreement or this chapter, except to the extent the partnership can establish that the partnership reasonably believes the general partner already knows the information; and (2) On demand, any other information concerning the partnership's activities, affairs, financial condition, and other circumstances, except to the extent the demand or the information demanded is unreasonable or otherwise improper under the circumstances. (d) The duty to furnish information under subsection (c) also applies to each general partner to the extent the general partner knows any of the information described in subsection (b). (e) Subject to subsection (j), on ten-days' demand made in a record received by a limited partnership, a person dissociated as a general partner may have access to the information and records described in subsections (a) and (b) at the locations specified in those subsections if: (1) The information or record pertains to the period during which the person was a general partner; (2) The person seeks the information or record in good faith; and (3) The person satisfies the requirements imposed on a limited partner by § 61-3-304(b) . (f) A limited partnership shall respond to a demand made pursuant to subsection (e) in the manner provided in § 61-3-304(c) . (g) A limited partnership may charge a person that makes a demand under this section the reasonable costs of copying, limited to the costs of labor and material. (h) A general partner or person dissociated as a general partner may exercise the rights under this section through an agent or, in the case of an individual under legal disability, a legal representative. Any restriction or condition imposed by the partnership agreement or under subsection (j) applies both to the agent or legal representative and to the general partner or person dissociated as a general partner. (i) The rights under this section do not extend to a person as transferee, but if: (1) A general partner dies, § 61-3-704 applies; and (2) An individual dissociates as a general partner under § 61-3-603(6)(B) or (C) , the legal representative of the individual may exercise the rights under subsection (c) of a person dissociated as a general partner. (j) In addition to any restriction or condition stated in the partnership agreement, a limited partnership, as a matter within the ordinary course of its activities and affairs, may impose reasonable restrictions and conditions on access to and use of information to be furnished under this section, including designating information confidential and imposing nondisclosure and safeguarding obligations on the recipient. In a dispute concerning the reasonableness of a restriction under this subsection (j), the partnership has the burden of proving reasonableness.

Legislative History

Added by 2017 Tenn. Acts, ch. 440,s 1, eff. 1/1/2018.