Tex. Business Organizations Code § 152.204
This is the official text of Tex. Business Organizations Code § 152.204, part of Texas’s Business Organizations Code — governs the formation and operation of corporations, LLCs, and partnerships.
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§ 152.204. GENERAL STANDARDS OF PARTNER'S CONDUCT.
Official statutory text
(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.
(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.
Status: in_force · Read it on the official government site
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