Rights of General Partner, LLC Member, or Trustee to Exercise Management Rights
During the Pendency of a Bankruptcy Case
This table is based on the May 5, 1997 version of Proposal #3 of the Working Group
on
Small Business, Partnership, and Single Asset Real
Estate.
|
CHAPTER &
PARTNERSHIP TYPE
|
TRUSTEE
|
DIP |
|
7, Limited Partnership
|
YES--A
|
-- |
|
7 General Partnership, One General Partner
[
FN: " Partner " is defined to include a general partner or LLC
member.]
|
YES--B
|
-- |
|
7 General Partnership, More than One General Partner
|
LIMITED-C
|
-- |
|
11, Limited Partnership
|
YES--A
|
YES--D |
|
11, General Partnership, One General Partner
|
YES--B
|
YES--D |
|
11, General Partnership, More than One General Partner
|
LIMITED--C
|
YES--D |
|
Chapters 12 and 13
|
|
YES--D |
|
LEGEND
A--Trustee exercises any management rights, subject to order of court transferring
management
rights if such transfer were in the best interests of the estate.
B--Same as A, except where individual debtor continues to function as a partner and is
entitled to
future distributions or profits.
C--Unless expressly permitted by agreement, the trustee may only exercise management rights
(1)
if no other general partners are otherwise authorized to do so, or (2) action cannot otherwise be
taken
under the partnership agreement, and (3) debtor partner is not an individual who continues to
function
as a general partner who is entitled to future distributions or profits.
D--Partner is entitled to exercise management rights
|
|