SENATE BILL REPORT

SB 6607

BYSenator McCaslin

Requiring written notice to proposed partners.

Senate Committee on Law & Justice

Senate Hearing Date(s):January 27, 1988; February 5, 1988

Majority Report:  Do pass.

      Signed by Senators Pullen, Chairman; McCaslin, Vice Chairman; Halsan, Hayner, Madsen, Newhouse, Niemi.

Senate Staff:Cliff Petersen (786-7457)

                  February 5, 1988

AS REPORTED BY COMMITTEE ON LAW & JUSTICE, FEBRUARY 5, 1988

BACKGROUND:

Currently a person may be made a partner in a partnership without his/her permission and without notice that he/she is under consideration to become a partner.  Thus a person can become liable for the debts of a business without being given the opportunity to decide if he or she wants to take on the risks associated with the position of partner.

SUMMARY:

Before any person can be made a partner in a partnership, written notice must be given at least 30 days in advance.  If the proposed partner objects in writing, the partnership is prohibited from voting the proposed partner into the partnership.  If a partnership votes in a proposed partner without giving notice or over the objection of the proposed partner, the partnership will be dissolved without liability to the proposed partner.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: no one