DISTRIBUTIONS AND WITHDRAWALS
179.51
179.51
Interim distributions. Except as provided in this subchapter, a partner is entitled to receive distributions from a limited partnership before his or her withdrawal from the limited partnership and before its dissolution and winding up thereof:
179.51(1)
(1) To the extent and at the times or upon the happening of the events specified in the partnership agreement; and
179.51(2)
(2) If any distribution constitutes a return of any part of his or her contribution under
s. 179.58 (2), to the extent and at the times or upon the happening of the events specified in provisions of a certificate of limited partnership that are in existence on April 28, 1990.
179.51 History
History: 1983 a. 173;
1989 a. 232.
179.52
179.52
Withdrawal of general partner. A general partner may withdraw from a limited partnership at any time by giving written notice to the other partners, but if the withdrawal violates the partnership agreement, the limited partnership may recover from the withdrawing general partner damages for breach of the partnership agreement and offset the damages against the amount otherwise distributable to him or her.
179.52 History
History: 1983 a. 173.
179.53
179.53
Withdrawal of limited partner. 179.53(1)
(1) A limited partner may withdraw from a limited partnership only at the time or upon the occurrence of an event specified in writing in the partnership agreement, except as provided in
sub. (2) and
s. 179.105 (2).
179.53(2)
(2) If all of the following conditions are met, a limited partner may withdraw upon not less than 6 months' prior written notice to each general partner at his or her address on the books of the limited partnership at its record office in this state:
179.53(2)(a)
(a) The limited partnership was formed prior to July 1, 1996.
179.53(2)(b)
(b) On July 1, 1996, the partnership agreement of the limited partnership did not specify in writing the time or the events upon the happening of which a limited partner could withdraw or a definite time for the dissolution and the winding up of the limited partnership.
179.53(2)(c)
(c) The limited partnership has not amended its partnership agreement since July 1, 1996, to specify in writing, the time or the events upon the happening of which a limited partner may withdraw or a definite time for the dissolution and winding up of the limited partnership.
179.53 History
History: 1983 a. 173;
1995 a. 400.
179.54
179.54
Distribution on withdrawal. Except as provided in this subchapter, on withdrawal any withdrawing partner is entitled to receive any distribution to which he or she is entitled under the partnership agreement and, if not otherwise provided in the agreement, he or she is entitled to receive, within a reasonable time after withdrawal, the fair value of his or her interest in the limited partnership as of the date of withdrawal based upon his or her right to share in distributions from the limited partnership.
179.55
179.55
Distribution in kind. Except as provided in writing in the partnership agreement or in a certificate of limited partnership under
s. 179.105 (2), a partner has no right to demand and receive any distribution from a limited partnership in any form other than cash. Except as provided in writing in the partnership agreement, a partner may not be compelled to accept a distribution of any asset in kind from a limited partnership to the extent that the percentage of the asset distributed to him or her exceeds a percentage of that asset which is equal to the percentage in which he or she shares in distributions from the limited partnership.
179.55 History
History: 1983 a. 173;
1989 a. 232.
179.56
179.56
Right to distribution. At the time a partner is entitled to receive a distribution, he or she has the status of and is entitled to all remedies available to a creditor of the limited partnership with respect to the distribution.
179.56 History
History: 1983 a. 173.
179.57
179.57
Limitations on distribution. A partner may not receive a distribution from a limited partnership to the extent that, after giving effect to the distribution, all liabilities of the limited partnership, other than liabilities to partners on account of their partnership interests, exceed the fair value of the partnership assets.
179.57 History
History: 1983 a. 173.
179.58
179.58
Liability on return of contribution. 179.58(1)
(1) If a partner has received the return of any part of his or her contribution without violation of the partnership agreement or this chapter, he or she is liable to the limited partnership for one year after the return for the amount of the returned contribution, but only to the extent necessary to discharge the limited partnership's liabilities to creditors who extended credit to the limited partnership during the period the contribution was held by the limited partnership.
179.58(2)
(2) If a partner has received the return of any part of his or her contribution in violation of the partnership agreement or this chapter, he or she is liable to the limited partnership for a period of 6 years after the return for the amount of the contribution wrongfully returned.
179.58(3)
(3) A partner receives a return of his or her contribution to the extent that a distribution to him or her reduces his or her share of the fair value of the net assets of the limited partnership below the value, as set forth in the partnership records required to be kept under
s. 179.05, of his or her contribution which has not been distributed to him or her.
179.58 History
History: 1983 a. 173;
1989 a. 232.
ASSIGNMENT OF PARTNERSHIP INTERESTS
179.61
179.61
Nature of partnership interest. A partnership interest is personal property.
179.61 History
History: 1983 a. 173.
179.62
179.62
Assignment of partnership interest. Except as provided in the partnership agreement, a partnership interest is assignable in whole or in part. An assignment of a partnership interest does not dissolve a limited partnership or entitle the assignee to become or to exercise any rights of a partner. An assignment entitles the assignee to receive, to the extent assigned, only the distribution to which the assignor would be entitled. Except as provided in the partnership agreement, a partner ceases to be a partner upon assignment of all his or her partnership interest.
179.62 History
History: 1983 a. 173.
179.63
179.63
Rights of creditor. On application to the circuit court by any judgment creditor of a partner, the court may charge the partnership interest of the partner with payment of the unsatisfied amount of the judgment with interest. To the extent charged, the judgment creditor has only the rights of an assignee of the partnership interest.
179.63 History
History: 1983 a. 173.
179.64
179.64
Right of assignee to become limited partner. 179.64(1)(1) An assignee of a partnership interest, including an assignee of a general partner, may become a limited partner if and to the extent that:
179.64(1)(a)
(a) The assignor gives the assignee that right in accordance with authority described in the partnership agreement, except as provided in
s. 179.105 (2); or
179.64(2)
(2) An assignee who has become a limited partner has, to the extent assigned, the rights and powers, and is subject to the restrictions and liabilities, of a limited partner under the partnership agreement and this chapter. An assignee who becomes a limited partner also is liable for the obligations of the assignor to make and return contributions as provided in
subchs. V and
VI. The assignee is not obligated for liabilities unknown to the assignee at the time he or she became a limited partner.
179.64(3)
(3) If an assignee of a partnership interest becomes a limited partner, the assignor is not released from his or her liability to the limited partnership under
ss. 179.17 and
179.42.
179.64 History
History: 1983 a. 173;
1989 a. 232.
179.65
179.65
Power of estate of deceased or partner adjudicated incompetent. If a partner who is an individual dies or is adjudicated incompetent to manage his or her person or property, the partner's personal representative, guardian, conservator, or other legal representative may exercise all of the partner's rights for the purpose of settling his or her estate or administering his or her property, including any power the partner had to give an assignee the right to become a limited partner. If a partner is a corporation, limited liability company, trust, or other entity and is dissolved or terminated, the powers of that partner may be exercised by its legal representative or successor.
DISSOLUTION; CONVERSION; MERGER
179.70
179.70
Definitions. In this subchapter:
179.70(1)
(1) "Business entity" means a domestic business entity and a foreign business entity.
179.70(3)
(3) "Foreign business entity" means a foreign limited liability company, as defined in
s. 183.0102 (8), a foreign limited partnership, a foreign corporation, as defined in
s. 180.0103 (9), or a foreign corporation, as defined in
s. 181.0103 (13).
179.70 History
History: 2001 a. 44.
179.71
179.71
Nonjudicial dissolution. A limited partnership is dissolved and its affairs shall be wound up on the happening of the first of the following:
179.71(1)
(1) At the time specified in the certificate of limited partnership.
179.71(1m)
(1m) Upon the happening of events specified in writing in the partnership agreement, except as provided in
s. 179.105 (2).
179.71(2)
(2) On the written consent of all partners.
179.71(3)
(3) An event of withdrawal of a general partner unless at the time there is at least one other general partner and the written provisions of the partnership agreement permit the business of the limited partnership to be carried on by the remaining general partner and that partner does so, but the limited partnership is not dissolved and is not required to be wound up by reason of any event of withdrawal if, within 90 days after the withdrawal, all partners agree in writing to continue the business of the limited partnership and to the appointment of one or more additional general partners if necessary or desired.
179.71(4)
(4) On the entry of an order of judicial dissolution under
s. 179.72.
179.71 History
History: 1983 a. 173;
1989 a. 232.
179.72
179.72
Judicial dissolution. 179.72(1)
(1) On application by or for a partner the circuit court may order dissolution of a limited partnership, if it is not practicable to carry on the business under the partnership agreement.
179.72(2)
(2) On application by a district attorney or the attorney general, the circuit court shall order dissolution of a limited partnership, if the limited partnership has violated
s. 940.302 (2) or
948.051 (2).
179.72 History
History: 1983 a. 173;
2007 a. 116.
179.73
179.73
Winding up. Except as provided in the partnership agreement, the general partners who have not wrongfully dissolved a limited partnership or, if none, the limited partners, may wind up the limited partnership's affairs; but the circuit court, upon cause shown, may wind up the limited partnership's affairs upon application of any partner, his or her legal representative, or assignee.
179.73 History
History: 1983 a. 173.
179.74
179.74
Distribution of assets. Except as provided in
s. 179.105 (3), on the winding up of a limited partnership, the assets shall be distributed in the following order:
179.74(1)
(1) To creditors, including partners who are creditors, in satisfaction of liabilities of the limited partnership other than liabilities for distributions to partners under
s. 179.51 or
179.54.
179.74(2)
(2) Except as provided in the partnership agreement, to partners and former partners in satisfaction of liabilities for distributions under
s. 179.51 or
179.54.
179.74(3)
(3) Except as provided in the partnership agreement, to partners in the following order:
179.74(3)(a)
(a) For the return of their contributions in the proportions in which the partners share in distributions.
179.74(3)(b)
(b) For their partnership interests in the proportions in which the partners share in distributions.
179.74 History
History: 1983 a. 173;
1989 a. 232.
179.76(1)(1) A domestic limited partnership may convert to another form of business entity if it satisfies the requirements under this section and if the conversion is permitted under the applicable law of the jurisdiction that governs the organization of the business entity into which the domestic limited partnership is converting.
179.76(2)(a)(a) A business entity other than a domestic limited partnership may convert to a domestic limited partnership if it satisfies the requirements under this section and if the conversion is permitted under the applicable law of the jurisdiction that governs the business entity.
179.76(2)(b)
(b) A business entity converting into a domestic limited partnership shall comply with the procedures that govern the submission and approval of a plan of conversion of the jurisdiction that governs the business entity.
179.76(3)
(3) A plan of conversion shall set forth all of the following:
179.76(3)(a)
(a) The name, form of business entity, and the identity of the jurisdiction governing the business entity that is to be converted.
179.76(3)(b)
(b) The name, form of business entity, and the identity of the jurisdiction that will govern the business entity after conversion.
179.76(3)(c)
(c) The terms and conditions of the conversion.
179.76(3)(d)
(d) The manner and basis of converting the shares or other ownership interests of the business entity that is to be converted into the shares or other ownership interests of the new form of business entity.
179.76(3)(e)
(e) The effective date and time of the conversion, if the conversion is to be effective other than at the time of filing the certificate of conversion, as provided under
s. 179.11 (2) or otherwise.
179.76(3)(f)
(f) A copy of the articles of incorporation, articles of organization, certificate of limited partnership, or other similar governing document of the business entity after conversion.
179.76(3)(g)
(g) Other provisions relating to the conversion, as determined by the business entity.
179.76(4)
(4) When a conversion is effective, all of the following apply:
179.76(4)(a)1.1. Except with respect to taxation laws of each jurisdiction that are applicable upon the conversion of the business entity, the business entity that is converted is no longer subject to the applicable law of the jurisdiction that governed the organization of the prior form of business entity and is subject to the applicable law of the jurisdiction that governs the new form of business entity.
179.76(4)(a)2.
2. If the conversion is from or to a business entity under the laws applicable to which one or more of the owners thereof is liable for the debts and obligations of such business entity, such owner or owners shall continue to be or become so liable for debts and obligations of such business entity, but only for such debts and obligations accrued during the period or periods in which such laws are applicable to such owner or owners. This subdivision does not affect liability under any taxation laws.
179.76(4)(b)
(b) The business entity continues to have all liabilities of the business entity that was converted.
