Partner's Interest in the Partnership Flashcards
In general, what is each partner’s interest in the partnership?
Each partner has a TRANSFERABLE INTEREST in the partnership, which consists of his share of partnership profits, losses, and distributions
What are the traits of a partner’s interest in the partnership?
A partner’s interest in the partnership is:
- treated as PERSONAL PROPERTY
- is TRANSFERRABLE without dissolving the partnership
- is ATTACHABLE
What is the default rule re: a partner’s share of profits and losses?
Absent an agreement to the contrary, a partner SHARES EQUALLY in partnership profits, and must contribute to the LOSSES in proportion to his share of profits
What is the rule re: transferability of a partner’s interest in the partnership?
The transfer of a partner’s interest in the partnership gives the transferee NO management rights.
It merely entitles transferee to receive profits that transferor would have otherwise received.
A partner may NOT sell his partner status without unanimous consent of all other partners.
