Kansas Statutes Annotated
Updated Through the 2013 Legislative Session

Statute Number:56-1a204
Tax Type:Corporate Income Tax
Brief Description:Person erroneously believing self to be limited partner.


56-1a204. Person erroneously believing self to be limited partner. (a) Except as provided in subsection (b), a person who makes a contribution to a partnership and who erroneously but in good faith believes that the person has become a limited partner in the partnership is not a general partner in the partnership and is not bound by its obligations by reason of making the contribution, receiving distributions from the partnership or exercising any rights of a limited partner if, on ascertaining the mistake, such person withdraws from future equity participation in the enterprise by taking such action as may be necessary to withdraw.
(b) A person who makes a contribution under the circumstances described in subsection (a) is liable as a general partner to any third party who transacts business with the partnership prior to the occurrence of either of the events referred to in subsection (a):
(1) If the person knew or should have known either that no certificate has been filed or that the certificate inaccurately refers to the person as a general partner; and
(2) if the third party actually believed in good faith that the person was a general partner at the time of the transaction and acted in reliance on such belief.
History: L. 1983, ch. 88, 21;L. 1988, ch. 195, 9; July 1.

Date Composed: 04/04/2011 Date Modified: 04/04/2011