KRS 362.1-603: Effect of partner's dissociation.

(1) If a partner's dissociation results in a dissolution and winding up of the partnership

business, then KRS 362.1 -801 to 362.1 -807 apply; otherwise, KRS 362.1 -701 to

362.1-705 apply.

(2) Upon a partner's dissociation, the dissociating partner's:

(a) Right to participate in the management and conduct of the partnership

business terminates, except as otherwise provided in KRS 362.1-803;

(b) Duty of loyalty under KRS 362.1-404(2)(c) terminates; and

(c) Duty of loyalty under KRS 362.1 -404(2)(a) and (b) and duty o f care under

KRS 362.1 -404(3) continue only with regard to matters arising and events

occurring before the partner's dissociation, unless the partner participates in

winding up the partnership's business pursuant to KRS 362.1-803.