Repayment of Contribution of Special Partner Prohibited; Payment of Interest and Profits to Special Partner

  1. Law
  2. Georgia Code
  3. Corporations, Partnerships, and Associations
  4. Limited Partnerships
  5. Limited Partnerships Formed Prior to February 15, 1952
  6. Repayment of Contribution of Special Partner Prohibited; Payment of Interest and Profits to Special Partner

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  1. No part of the sum which any special partner shall have contributed to the capital stock shall be withdrawn by him or paid or transferred to him in the shape of dividends, profits, or otherwise at any time during the continuance of the partnership, but any partner may annually receive lawful interest on the sum so contributed by him, if the payment of such interest shall not reduce the original amount of such capital. If, after the payment of such interest, any profits shall remain to be divided, he may also receive his portion of such profits, but shall not be liable for any debts previously contracted by the general partners.
  2. If it shall appear that, by the payment of interest or profits to any special partner, the original capital has been reduced, or the firm shall be unable to pay its debts, the partner receiving the same shall be bound to restore the interest or profits received by him necessary to make good his original share of the original stock.

(Laws 1837, Cobb's 1851 Digest, p. 587; Code 1863, §§ 1936, 1937; Code 1868, §§ 1924, 1925; Code 1873, §§ 1934, 1935; Code 1882, §§ 1934, 1935; Civil Code 1895, §§ 2677, 2678; Civil Code 1910, §§ 3206, 3207; Code 1933, §§ 75-415, 75-416; Code 1981, §14-9-124; Code 1981, §14-9A-124, as redesignated by Ga. L. 1988, p. 1016, § 1.)


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