Tex. Bus. Orgs. Code § 152.204 · Subchapter D. RELATIONSHIP BETWEEN PARTNERS AND BETWEEN PARTNERS AND PARTNERSHIPS
GENERAL STANDARDS OF PARTNER'S CONDUCT.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) A partner owes to the partnership, the other partners, and a transferee of a deceased partner's partnership interest as designated in Section 152.406(a)(2):
(1) a duty of loyalty; and
(2) a duty of care.
(b) A partner shall discharge the partner's duties to the partnership and the other partners under this code or under the partnership agreement and exercise any rights and powers in the conduct or winding up of the partnership business:
(1) in good faith; and
(2) in a manner the partner reasonably believes to be in the best interest of the partnership.
(c) A partner does not violate a duty or obligation under this chapter or under the partnership agreement merely because the partner's conduct furthers the partner's own interest.
(d) A partner, in the partner's capacity as partner, is not a trustee and is not held to the standards of a trustee.
Notes and commentary — not statutory text
History
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
Amended by:
Acts 2005, 79th Leg., Ch. 64 (H.B. 1319), Sec. 77, eff. January 1, 2006.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/BO/htm/BO.152.htm
- Text hash
- sha256 6e73ccf787138d09d7d69597965e6355b08ee35095a985bea7495ad07a0832a4
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Cited by 4 provisions
Provisions in this library whose text cites Tex. Bus. Orgs. Code § 152.204. Each shows the citation as that text prints it.
Business Organizations Code
- Tex. Bus. Orgs. Code § 152.002EFFECT OF PARTNERSHIP AGREEMENT; NONWAIVABLE AND VARIABLE PROVISIONS.Printed as Section 152.204(b)
- Tex. Bus. Orgs. Code § 152.206PARTNER'S DUTY OF CARE.Printed as Section 152.204(b)
- Tex. Bus. Orgs. Code § 152.207STANDARDS OF CONDUCT APPLICABLE TO PERSON WINDING UP PARTNERSHIP BUSINESS.Printed as Sections 152.204-152.206
- Tex. Bus. Orgs. Code § 152.501EVENTS OF WITHDRAWAL.Printed as Sections 152.204-152.206
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.