AB854: Bill Text

AB854,95,22 4. It must correct the inaccuracy or defect.

AB854,96,2 (4) A statement of correction is effective as of the effective date of the filed record that it corrects except for purposes of s. 179.0103 (4) and as to persons relying on the uncorrected filed record and adversely affected by the correction. For those purposes and as to those persons, the statement of correction is effective when filed.

AB854,96,6 179.0210 Duty of department to file; review of refusal to file; delivery of record by department. (1) The department shall file a record delivered to the department for filing which satisfies this chapter. The duty of the department under this section is ministerial.

AB854,96,11 (2) When the department files a record, the department shall record it as filed on the date of its delivery. After filing a record, the department shall deliver to the person that submitted the record a copy of the record with an acknowledgment of the date of filing and, in the case of a statement of denial, also to the limited partnership to which the statement pertains.

AB854,96,13 (3) If the department refuses to file a record, the department shall, not later than 5 business days after the record is delivered, do all of the following:

AB854,96,15 (a) Return the record or notify the person that submitted the record of the refusal.

AB854,96,16 (b) Provide a brief explanation in a record of the reason for the refusal.

AB854,96,20 (4) If the department refuses to file a record, the person that submitted the record may petition the circuit court to compel filing of the record. The record and the explanation of the department of the refusal to file must be attached to the petition. The court may decide the matter in a summary proceeding.

AB854,96,22 (5) The filing of or refusal to file a record does not create a presumption of any of the following:

AB854,96,23 (a) That the record does or does not conform to the requirements of this chapter.

AB854,96,24 (b) That the information contained in the record is correct or incorrect.

AB854,97,3 (6) Except as otherwise provided by s. 179.0121 or by law other than this chapter, the department may deliver any record to a person by delivering it in any of the following ways:

AB854,97,4 (a) In person to the person that submitted it.

AB854,97,5 (b) To the address of the person's registered agent.

AB854,97,6 (c) To the principal office of the person.

AB854,97,7 (d) To another address the person provides to the department for delivery.

AB854,97,10 179.0211 Certificate of status. (1) Any person may obtain from the department, upon request, a certificate of status for a limited partnership or registered foreign limited partnership.

AB854,97,11 (2) A certificate of status shall include all of the following information:

AB854,97,13 (a) The domestic partnership's partnership name or the foreign partnership's partnership name and fictitious name, if any, used in this state.

AB854,97,14 (b) Whether each of the following is true:

AB854,97,17 1. The domestic partnership is a limited partnership whose governing law is the law of this state, or the foreign limited partnership is authorized to transact business in this state.

AB854,97,20 2. The domestic partnership or the foreign partnership has, during its most recently completed report year, filed with the department an annual report required by s. 179.0212.

AB854,97,22 3. The domestic partnership has not filed a statement of dissolution or statement of termination.

AB854,97,25 4. The foreign partnership has not filed a statement of withdrawal of its foreign registration under s. 179.1011 and, if not, the effective date of its registration statement.

AB854,98,2 (c) The domestic partnership's effective date of its certificate of limited partnership and the period of its duration if less than perpetual.

AB854,98,4 (3) The certificate of status may include other facts of record in the department that are requested.

AB854,98,8 (4) Subject to any qualification stated in a certificate of status issued by the department, the certificate is conclusive evidence that the limited partnership or the foreign limited partnership is in existence or is authorized to transact business in this state.

AB854,98,11 (5) Upon request, by telephone or otherwise, the department shall confirm by telephone any of the information required in a certificate of status under sub. (2) and may confirm any other information permitted under sub. (3).

AB854,98,14 179.0212 Annual report for department. (1) A limited partnership or registered foreign limited partnership shall deliver to the department for filing an annual report that states all of the following:

AB854,98,15 (a) The name of the partnership or registered foreign partnership.

AB854,98,17 (b) The street address of its registered office in this state and the name and e-mail address of its registered agent at that office.

AB854,98,18 (c) The street address of its principal office.

AB854,98,19 (d) The name of at least one general partner.

AB854,98,21 (e) In the case of a foreign partnership, the jurisdiction of its governing law and any fictitious name adopted under s. 179.1006 (1).

AB854,98,23 (2) Information in the annual report must be current as of the date the report is signed by the limited partnership or registered foreign limited partnership.

AB854,99,2 (3) (a) A domestic limited partnership shall deliver its annual report to the department in each year following the calendar year in which the domestic limited partnership's certificate of limited partnership became effective, during the calendar year quarter in which the anniversary date of the certificate effective date occurs.

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.