§ 16502 Partner Profit Distribution Rights

This law says a partner can only sell or give away their share of the partnership’s profits and losses and the right to get money from the partnership, and that share is treated like personal stuff you own.

Key Takeaways

•A partner’s only transferable thing is the profit/loss share and right to get payouts.
•That share is considered personal property, like something you own personally.
•You can’t transfer other partnership rights or the partnership itself.

Example

Jane wants to leave her business partnership and sell her part to Tom.

Jane can only sell Tom her right to get her share of the profits, losses, and any payouts from the partnership. She can't sell the partnership itself or any other rights.

The only transferable interest of a partner in the partnership is the partner’s share of the profits and losses of the partnership and the partner’s right to receive distributions. The interest is personal property. (Added by Stats. 1996, Ch. 1003, Sec. 2. Effective January 1, 1997.)

Key Takeaways

•A partner’s only transferable thing is the profit/loss share and right to get payouts.
•That share is considered personal property, like something you own personally.
•You can’t transfer other partnership rights or the partnership itself.

Example

Jane wants to leave her business partnership and sell her part to Tom.

Jane can only sell Tom her right to get her share of the profits, losses, and any payouts from the partnership. She can't sell the partnership itself or any other rights.

Key Takeaways

Example

Key Terms

References

§ 16502 Partner Profit Distribution Rights

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References