Liability of the General Partner after Resignation or Termination Clause Samples
This clause defines the responsibilities and potential liabilities of a general partner after they have resigned or their role has been terminated. It typically outlines the extent to which the former general partner remains accountable for obligations or actions that occurred during their tenure, and may specify any ongoing duties, such as providing information or cooperating with the partnership. The core function of this clause is to clarify the boundaries of liability for a departing general partner, ensuring that both the partnership and the former partner understand their rights and obligations after the relationship ends.
Liability of the General Partner after Resignation or Termination. If the General Partner resigns or its status as a general partner is terminated in accordance with the provisions of this Article 6 or the Limited Partnership Act, the General Partner's liability as a general partner of the Partnership under the Limited Partnership Act and this Agreement shall cease and the Partnership shall promptly take all steps reasonably necessary under the Limited Partnership Act to cause such cessation of liability; provided, however, that if the General Partner resigns during dissolution and winding up the Partnership, the General Partner shall continue to be the General Partner for purposes of winding up the Partnership's affairs pursuant to Section 7.2 of this Agreement, unless a successor General Partner is elected.