Texas § BO.153.155 - WITHDRAWAL OF GENERAL PARTNER

§ BO.153.155. WITHDRAWAL OF GENERAL PARTNER

WITHDRAWAL OF GENERAL PARTNER. (a) A person ceases to be a general partner of a limited partnership on the occurrence of one or more of the following events of withdrawal: (1) the general partner withdraws as a general partner from the limited partnership as provided by Subsection (b); (2) the general partner ceases to be a general partner of the limited partnership as provided by Section 153.252 (b); (3) the general partner is removed as a general partner in accordance with the partnership agreement; (4) unless otherwise provided by a written partnership agreement, or with the written consent of all partners, the general partner: (A) makes a general assignment for the benefit of creditors; (B) files a voluntary bankruptcy petition; (C) becomes the subject of an order for relief or is declared insolvent in a federal or state bankruptcy or insolvency proceeding; (D) files a petition or answer seeking for the general partner a reorganization, arrangement, composition, readjustment, liquidation, winding up, termination, dissolution, or similar relief under law; (E) files a pleading admitting or failing to contest the material allegations of a petition filed against the general partner in a proceeding of the type described by Paragraphs (A)-(D); or (F) seeks, consents to, or acquiesces in the appointment of a trustee, receiver, or liquidator of the general partner or of all or a substantial part of the general partner's properties; (5) unless otherwise provided by a written partnership agreement or with the written consent of all partners, the expiration of: (A) 120 days after the date of the commencement of a proceeding against the general partner seeking reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under law if the proceeding has not been previously dismissed; (B) 90 days after the date of the appointment, without the general partner's consent, of a trustee, receiver, or liquidator of the general partner or of all or a substantial part of the general partner's properties if the appointment has not previously been vacated or stayed; or (C) 90 days after the date of expiration of a stay, if the appointment has not previously been vacated; (6) the death of a general partner; (7) a court adjudicating a general partner who is an individual mentally incompetent to manage the general partner's person or property; (8) unless otherwise provided by a written partnership agreement or with the written consent of all partners, the commencement of winding up activities intended to conclude in the termination of a trust that is a general partner, but not merely the substitution of a new trustee; (9) unless otherwise provided by a written partnership agreement or with the written consent of all partners, the commencement of winding up activities of a separate partnership that is a general partner; (10) unless otherwise provided by a written partnership agreement or with the written consent of all partners, the: (A) filing of a certificate of termination or its equivalent for an entity, other than a nonfiling entity or a foreign nonfiling entity, that is a general partner; or (B) termination or revocation of the certificate of formation or its equivalent of an entity, other than a nonfiling entity or a foreign nonfiling entity, that is a general partner and the expiration of 90 days after the date of notice to the entity of termination or revocation without a reinstatement of its certificate of formation or its equivalent; or (11) the distribution by the fiduciary of an estate that is a general partner of the estate's entire interest in the limited partnership. (b) A general partner may withdraw at any time from a limited partnership and cease to be a general partner under Subsection (a) by giving written notice to the other partners. Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006. Amended by: Acts 2007, 80th Leg., R.S., Ch. 688 (H.B. 1737 ), Sec. 122, eff. September 1, 2007.