What is the Uniform Partnership Act?
In the United States, the National Conference of Commissioners on Uniform State Laws (NCCUSL) proposed the Uniform Partnership Act (UPA). The objective of the Act is to govern business partnerships in the U.S. The act contains provisions on how business partnerships can be formed, as well as how they can be dissolved. The Uniform Partnership Act (UPA) was first proposed in 1914 but it has been amended severally. All states in the U.S adopted UPA except Louisiana.
How Does the Uniform Partnership Act Work?
The Uniform Partnership Act provides governance or regulation for business partnerships and it is widely adopted in the United States. The proceed procedures for the formation of business partnership tion of a business partnership, the fiduciary duties of all business partners alongside vital rules are stated in the UPA. As contained in UPA, if after a dissociation of a business partnership, some partners still want to continue with the partnership, they can show interest within 90 days of the dissociation. This will save the partnership from being dissolved after a partner dissociates.
Uniform Partnership Act (UPA) 1997 Revision
There are amendments to the Uniform Partnership Act (UPA). The limited liability partnership amendment to UPA were propagated in 1996 and came into force in 1997. One of the amendments of UPA was the provision that a partner’s dissociation should not lead to the dissolution of the business partnership unless other partners show no interest in continuing with the partnership within 90 days of dissociation. This means that if there is no majority dissociation or show of interest to dissolution, a business partnership can continue, even if one partner dissociates. The 1997 Revised Uniform Partnership Act also contained the following provisions:
- The duties, obligations and rights of partners in a business partnership.
- Partnership is an entity, hence it can sue and can be sued. Properties can be acquired in the partnerships name.
- No partner can take any personal interest in the property of a partnership.
- The revised UPA also highlights the obligations of partners to good faith and fair dealing and loyalty of partners in the agreement.
- Procedures for changing from an ordinary partnership to a limited partnership to conversion to a new entity are clearly stated in RUPA.
Related Topics
- Business Entities (Intro)
- Why is studying business entities important?
- Considerations When Forming a Business Entity
- Holistic (Detailed) Overview of Setting Up a Business Entity
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What are the main types of business entity?
- What are the primary characteristics of business entities?
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Operating Subsidiary
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Holding Company
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- Uniform Partnership Act
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- Funding the Partnership
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- What are the main characteristics of a Limited partnership?
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- Forming an LLC
- Articles of Organization
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- Articles of IncorporationÂ
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- Corporate Bylaws
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- Taxation of Sole Proprietorship
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- Publicly-Traded Partnerships
- A Detailed Explanation of the Limited Liability Company
- A Detailed Explanation of the Corporation
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