<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 48-7A-603 - Effect of partner's dissociation. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2069838Normal { text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2069838SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2069838CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2069838Normal-000000 { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2069838DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; 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font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style></head><body><div><p dir="ltr" class="s2069838Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=48-7A-603"><span class="s2069838SENU">48-7A-603</span></a><span xml:space="preserve" class="s2069838SENU">. </span><span class="s2069838CL">Effect of partner's dissociation.</span></p><p dir="ltr" class="s2069838Normal-000000"><span class="s2069838DefaultParagraphFont">(a) If a partner's dissociation results in a dissolution and winding up of the partnership business, Article 8 applies; otherwise, Article 7 applies.</span></p><p dir="ltr" class="s2069838Normal-000001"><span class="s2069838DefaultParagraphFont">(b) Upon a partner's dissociation:</span></p><p dir="ltr" class="s2069838Normal-000002"><span class="s2069838DefaultParagraphFont">(1)    The partner's right to participate in the management and conduct of the partnership business terminates, except as otherwise provided in § 48</span><span class="s2069838DefaultParagraphFont-000003">-</span><span class="s2069838DefaultParagraphFont">7A</span><span class="s2069838DefaultParagraphFont-000003">-</span><span class="s2069838DefaultParagraphFont">803;</span></p><p dir="ltr" class="s2069838Normal-000002"><span class="s2069838DefaultParagraphFont">(2)    The partner's duty of loyalty under subsection 48</span><span class="s2069838DefaultParagraphFont-000003">-</span><span class="s2069838DefaultParagraphFont">7A</span><span class="s2069838DefaultParagraphFont-000003">-</span><span class="s2069838DefaultParagraphFont">404(b)(3) terminates; and</span></p><p dir="ltr" class="s2069838Normal-000002"><span class="s2069838DefaultParagraphFont">(3)    The partner's duty of loyalty under subsections 48</span><span class="s2069838DefaultParagraphFont-000003">-</span><span class="s2069838DefaultParagraphFont">7A</span><span class="s2069838DefaultParagraphFont-000003">-</span><span class="s2069838DefaultParagraphFont">404(b)(1) and (2) and duty of care under subsection 48</span><span class="s2069838DefaultParagraphFont-000003">-</span><span class="s2069838DefaultParagraphFont">7A</span><span class="s2069838DefaultParagraphFont-000003">-</span><span class="s2069838DefaultParagraphFont">404(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 § 48</span><span class="s2069838DefaultParagraphFont-000003">-</span><span class="s2069838DefaultParagraphFont">7A</span><span class="s2069838DefaultParagraphFont-000003">-</span><span class="s2069838DefaultParagraphFont">803.</span></p><p dir="ltr" class="s2069838Normal"><span xml:space="preserve" class="s2069838000004"> </span></p><p dir="ltr" class="s2069838Normal"><span class="s2069838SCL">Source:</span><span xml:space="preserve" class="s2069838SCL-000005"> SL 2001, ch 249, § 603.</span></p></div></body></html>