Illinois § 1112

§ 1112.

Power of general partners and persons dissociated as general partners to bind organization after merger. (a) An act of a person that immediately before merger became effective was a general partner in a constituent limited partnership binds the surviving organization after the merger becomes effective, if: (1) before the merger became effective, the act would have bound the constituent limited partnership under Section 402; and (2) at the time the third party enters into the transaction, the third party: (A) does not have notice of the merger; and (B) reasonably believes that the surviving business is the constituent limited partnership and that the person is a general partner in the constituent limited partnership. (b) An act of a person that before a merger became effective was dissociated as a general partner from a constituent limited partnership binds the surviving organization after the merger becomes effective, if: (1) before the merger became effective, the act would have bound the constituent limited partnership under Section 402 if the person had been a general partner; and (2) at the time the third party enters into the transaction, less than 2 years have passed since the person dissociated as a general partner and the third party: (A) does not have notice of the dissociation; (B) does not have notice of the merger; and (C) reasonably believes that the surviving organization is the constituent limited partnership and that the person is a general partner in the constituent limited partnership. (c) If a person having knowledge of the merger causes a surviving organization to incur an obligation under subsection (a) or (b), the person is liable: (1) to the surviving organization for any damage caused to the organization arising from the obligation; and (2) if another person is liable for the obligation, to that other person for any damage caused to that other person arising from the liability. (Source: P.A. 100-561, eff. 7-1-18.)