AB854: Bill Text

AB854,99,5 (b) A registered foreign limited partnership shall deliver its annual report to the department during the first calendar quarter of each year following the calendar year in which the foreign limited partnership registered to do business in this state.

AB854,99,11 (4) If an annual report does not contain the information required by this section, the department promptly shall notify the reporting limited partnership or registered foreign limited partnership in a record and return the report to it for correction. If the annual report is corrected to contain the information required by this section and delivered to the department within 30 days after the effective date of the notice under s. 179.0103 (7m), the annual report is timely filed.

AB854,99,15 (5) If an annual report contains a registered office or registered agent which differs from the information shown in the records of the department immediately before the report becomes effective, the differing information is considered a statement of change under s. 179.0118.

AB854,99,16 subchapter III

AB854,99,17 LIMITED PARTNERS

AB854,99,20 179.0301 Becoming limited partner. (1) Upon formation of a limited partnership, a person becomes a limited partner as agreed among the persons that are to be the initial partners.

AB854,99,22 (2) After formation of a limited partnership, a person becomes a limited partner in any of the following ways:

AB854,99,23 (a) As provided in the partnership agreement.

AB854,99,24 (b) As the result of a transaction effective under subch. XI.

AB854,99,25 (c) With the affirmative vote or consent of all the partners.

AB854,100,1 (d) As provided in s. 179.0801 (1) (d) or (e).

AB854,100,2 (3) A person may become a limited partner without doing any of the following:

AB854,100,3 (a) Acquiring a transferable interest.

AB854,100,5 (b) Making or being obligated to make a contribution to the limited partnership.

AB854,100,8 179.0302 No agency power of limited partner as limited partner. (1) A limited partner is not an agent of a limited partnership solely by reason of being a limited partner.

AB854,100,11 (2) A person's status as a limited partner does not prevent or restrict law other than this chapter from imposing liability on a limited partnership because of the person's conduct.

AB854,100,19 179.0303 No liability as limited partner for limited partnership obligations. (1) A debt, obligation, or other liability of a limited partnership is not the debt, obligation, or other liability of a limited partner. A limited partner is not personally liable, directly or indirectly, by way of contribution or otherwise, for a debt, obligation, or other liability of the partnership solely by reason of being or acting as a limited partner, even if the limited partner participates in the management and control of the limited partnership. This subsection applies regardless of the dissolution of the partnership.

AB854,100,23 (2) The failure of a limited partnership to observe formalities relating to the exercise of its powers or management of its activities and affairs is not a ground for imposing liability on a limited partner for a debt, obligation, or other liability of the partnership.

AB854,101,4 179.0304 Rights to information of limited partner and person dissociated as limited partner. (1) On 10 days' demand made in a record received by the limited partnership, a limited partner may inspect and copy required information during regular business hours in the limited partnership's principal office. The limited partner need not have any particular purpose for seeking the information.

AB854,101,8 (2) During regular business hours and at a reasonable location specified by the limited partnership, a limited partner may inspect and copy information regarding the activities and affairs, financial condition, and other circumstances of the limited partnership as is just and reasonable if all of the following apply:

AB854,101,10 (a) The limited partner seeks the information for a purpose reasonably related to the partner's interest as a limited partner.

AB854,101,13 (b) The limited partner makes a demand in a record received by the limited partnership, describing with reasonable particularity the information sought and the purpose for seeking the information.

AB854,101,15 (c) The information sought is directly connected to the limited partner's purpose.

AB854,101,18 (3) Not later than 10 days after receiving a demand pursuant to sub. (2), the limited partnership shall inform, in a record, the limited partner that made the demand of all of the following:

AB854,101,20 (a) What information the partnership will provide in response to the demand and when and where the partnership will provide the information.

AB854,101,22 (b) The partnership's reasons for declining, if the partnership declines to provide any demanded information.

AB854,102,2 (4) Whenever this chapter or a partnership agreement provides for a limited partner to vote on or give or withhold consent to a matter, before the vote is cast or consent is given or withheld, the limited partnership shall, without demand, provide the limited partner with all information that is known to the partnership and that is material to the limited partner's decision.

AB854,102,5 (5) On 10 days' demand made in a record received by a limited partnership, a person dissociated as a limited partner may have access to information to which the person was entitled while a limited partner if all of the following apply:

AB854,102,7 (a) The information pertains to the period during which the person was a limited partner.

AB854,102,8 (b) The person seeks the information in good faith.

AB854,102,10 (c) The person satisfies the requirements imposed on a limited partner by sub. (2).

AB854,102,12 (6) A limited partnership shall respond to a demand made pursuant to sub. (5) in the manner provided in sub. (3).

AB854,102,14 (7) A limited partnership may charge a person that makes a demand under this section reasonable costs of copying, limited to the costs of labor and material.

AB854,102,19 (8) A limited partner or person dissociated as a limited partner may exercise the rights under this section through an agent or, in the case of an individual under legal disability, a legal representative. Any restriction or condition imposed by the partnership agreement or under sub. (10) applies both to the agent or legal representative and to the limited partner or person dissociated as a limited partner.

AB854,102,21 (9) Subject to s. 179.0704, the rights under this section do not extend to a person as transferee.

AB854,103,3 (10) In addition to any restriction or condition stated in its partnership agreement, a limited partnership, as a matter within the ordinary course of its activities and affairs, may impose reasonable restrictions and conditions on access to and use of information to be furnished under this section, including designating information confidential and imposing nondisclosure and safeguarding obligations on the recipient. In a dispute concerning the reasonableness of a restriction under this subsection, the partnership has the burden of proving reasonableness.

AB854,103,7 179.0305 Limited duties of limited partners. (1) A limited partner shall discharge any duties to the partnership and the other partners under the partnership agreement and exercise any rights under this chapter or the partnership agreement consistently with the contractual obligation of good faith and fair dealing.

AB854,103,10 (2) Except as otherwise provided in sub. (1), a limited partner does not have any duty to the limited partnership or to any other partner solely by reason of acting as a limited partner.

AB854,103,13 (3) If a limited partner enters into a transaction with the limited partnership, the limited partner's rights and obligations arising from the transaction are the same as those of a person that is not a partner.

AB854,104,2 (4m) Unless otherwise provided in the partnership agreement, any action that is to be voted on or consented to by some or all of the limited partners may be taken without a meeting of the limited partners entitled to vote or consent if all of such partners consent to the action. The consent shall be evidenced by one or more written consents describing the action, signed by each of such partners, and delivered to the partnership for inclusion in the partnership records. Unless otherwise provided in the partnership agreement, if a person, whether or not then a limited partner, so consenting directs, whether through instruction to an agent or otherwise, that such consent will be effective at a future time, including a time determined upon the happening of an event, then the person shall be deemed to have consented as a partner at this future time so long as the person is then a limited partner and did not revoke the consent prior to that time. Any such consent shall be revocable prior to its becoming effective, unless the written consent provides otherwise.

AB854,104,9 179.0306 Person erroneously believing self to be limited partner. (1) Except as otherwise provided in sub. (2), a person that makes an investment in a business enterprise and erroneously but in good faith believes that the person has become a limited partner in the enterprise is not liable for the enterprise's obligations by reason of making the investment, receiving distributions from the enterprise, or exercising any rights of or appropriate to a limited partner, if, on ascertaining the mistake, the person does any of the following:

AB854,104,11 (a) Causes an appropriate certificate of limited partnership, amendment, or statement of correction to be signed and delivered to the department for filing.

AB854,104,14 (b) Withdraws from future participation as an owner in the enterprise by signing and delivering to the department for filing a statement of negation under this section.

AB854,104,20 (2) A person that makes an investment described in sub. (1) is liable to the same extent as a general partner to any 3rd party that enters into a transaction with the enterprise, believing in good faith that the person is a general partner, before the department files a statement of negation, certificate of limited partnership, amendment, or statement of correction to show that the person is not a general partner.

AB854,105,2 (3) If a person makes a diligent effort in good faith to comply with sub. (1) (a) and is unable to cause the appropriate certificate of limited partnership, amendment, or statement of correction to be signed and delivered to the department for filing, the person has the right to withdraw from the enterprise pursuant to sub. (1) (b) even if the withdrawal would otherwise breach an agreement with others that are or have agreed to become co-owners of the enterprise.

AB854,105,3 subchapter IV

AB854,105,4 GENERAL PARTNERS

AB854,105,7 179.0401 Becoming general partner. (1) Upon formation of a limited partnership, a person becomes a general partner as agreed among the persons that are to be the initial partners.

AB854,105,9 (2) After formation of a limited partnership, a person becomes a general partner in any of the following ways:

AB854,105,10 (a) As provided in the partnership agreement.

AB854,105,11 (b) As a result of a transaction effective under subch. XI.

AB854,105,12 (c) With the affirmative vote or consent of all the partners.

AB854,105,13 (d) As provided in s. 179.0801 (1) (c) 2.

AB854,105,14 (3) A person may become a general partner without doing any of the following:

AB854,105,15 (a) Acquiring a transferable interest.

AB854,105,16 (b) Making or being obligated to make a contribution to the partnership.

AB854,105,19 179.0402 General partner agent of limited partnership. Subject to the effect of a statement of partnership authority under s. 179.04023, the following rules apply:

AB854,106,2 (1) Each general partner is an agent of the limited partnership for the purposes of its activities and affairs. An act of a general partner, including the signing of a record in the partnership's name, for apparently carrying on in the ordinary course the partnership's activities and affairs or activities and affairs of the kind carried on by the partnership binds the partnership, unless the general partner did not have authority to act for the partnership in the particular matter and the person with which the general partner was dealing knew or had notice that the general partner lacked authority.

AB854,106,6 (2) An act of a general partner which is not apparently for carrying on in the ordinary course the limited partnership's activities and affairs or activities and affairs of the kind carried on by the partnership binds the partnership only if the act was actually authorized by all the other partners.

AB854,106,9 179.04023 Statement of partnership authority. (1) (a) A limited partnership may deliver to the department for filing a statement of partnership authority.

AB854,106,10 (b) The statement of authority must include all of the following:

AB854,106,11 1. The name of the partnership.

AB854,106,13 2. The street address of the partnership's registered office in this state and the name and e-mail address of its registered agent at that office.

AB854,106,16 (c) With respect to any position that exists in or with respect to the partnership, the statement of authority may state the authority, or limitations on the authority, of all persons holding the position to do any of the following:

AB854,106,18 1. Sign an instrument transferring real property held in the name of the partnership.

AB854,106,20 2. Enter into other transactions on behalf of, or otherwise act for or bind, the partnership.

AB854,106,22 (d) The statement of authority may state the authority, or limitations on the authority, of a specific person to do any of the following:

AB854,106,24 1. Sign an instrument transferring real property held in the name of the partnership.

AB854,107,2 2. Enter into other transactions on behalf of, or otherwise act for or bind, the partnership.

AB854,107,5 (2) To amend or cancel a statement of authority filed by the department, a limited partnership must deliver to the department for filing an amendment or cancellation stating all of the following:

AB854,107,6 (a) The name of the partnership.

AB854,107,8 (b) The street address of the partnership's registered office in this state and the name and e-mail address of its registered agent at that office.

AB854,107,9 (c) The date the statement being affected became effective.

AB854,107,11 (d) The contents of the amendment or a declaration that the statement is canceled.

AB854,107,15 (2m) (a) A statement of authority is renewable for successive 5-year periods. To renew a statement of authority filed by the department, a partnership must deliver to the department for filing, during the 3 months before the cancellation would occur under sub. (10), a statement of renewal that includes all of the following:

AB854,107,16 1. The name of the partnership.

AB854,107,18 2. The street address of the partnership's registered office in this state and the name and e-mail address of its registered agent at that office.

AB854,107,19 3. The statement of authority being affected.

AB854,107,20 4. A declaration that the statement of authority is being renewed.

AB854,107,23 (b) When filed, a statement of renewal that complies with par. (a) renews the statement of authority for a 5-year period commencing with the date of filing of the statement of renewal.

AB854,107,25 (3) A statement of authority affects only the power of a person to bind a partnership to persons that are not partners.

AB854,108,4 (4) Subject to sub. (3) and s. 179.0103 (4) (cr), and except as otherwise provided in subs. (6) to (8), a limitation on the authority of a person or a position contained in an effective statement of authority is not by itself evidence of any person's knowledge or notice of the limitation.

AB854,108,8 (5) Subject to sub. (3), a grant of authority not pertaining to transfers of real property and contained in an effective statement of authority is conclusive in favor of a person that gives value in reliance on the grant, except to the extent that when the person gives value any of the following applies:

AB854,108,9 (a) The person has knowledge to the contrary.

AB854,108,10 (b) The statement has been canceled or restrictively amended under sub. (2).

AB854,108,12 (c) A limitation on the grant is contained in another statement of authority that became effective after the statement containing the grant became effective.

AB854,108,18 (6) Subject to sub. (3), an effective statement of authority that grants authority to transfer real property held in the name of the partnership, a certified copy of which statement is recorded in the office of the register of deeds for the county in which the property is located, is conclusive in favor of a person that gives value in reliance on the grant without knowledge to the contrary, except to the extent that when the person gives value any of the following applies:

AB854,108,21 (a) The statement has been canceled or restrictively amended under sub. (2), and a certified copy of the cancellation or restrictive amendment has been recorded in the office of the register of deeds for the county in which the property is located.

AB854,108,25 (b) A limitation on the grant is contained in another statement of authority that became effective after the statement containing the grant became effective, and a certified copy of the later-effective statement is recorded in the office of the register of deeds for the county in which the property is located.