805 ILCS 206/404

(805 ILCS 206/404)

Sec. 404.

General standards of partner's conduct.

(a) The fiduciary duties a partner owes to the partnership and the other
partners include the
duty of loyalty and the duty of care set forth in subsections (b) and (c) of
this Section.

(b) A partner's duty of loyalty to the partnership and the other partners
includes the following:

(1) to account to the partnership and hold as trustee

for it any property, profit, or benefit derived by the partner in the conduct and winding up of the partnership business or derived from a use by the partner of partnership property, including the appropriation of a partnership opportunity;

(2) to act fairly when a partner deals with the

partnership in the conduct or winding up of the partnership business as or on behalf of a party having an interest adverse to the partnership; and

(3) to refrain from competing with the partnership in

the conduct of the partnership business before the dissolution of the partnership.

(c) A partner's duty of care to the partnership and the other partners in
the conduct and
winding up of the partnership business is limited to refraining from engaging
in grossly negligent
or reckless conduct, intentional misconduct, or a knowing violation of law.

(d) A partner shall discharge his or her duties to the partnership and the
other partners under
this Act or under the partnership agreement and exercise any rights consistent
with the obligation
of good faith and fair dealing.

(e) A partner does not violate a duty or obligation under this Act or under
the partnership
agreement merely because the partner's conduct furthers the partner's own
interest.

(f) This Section applies to a person winding up the partnership business as
the personal or
legal representative of the last surviving partner as if the person were a
partner.

(Source: P.A. 92-740, eff. 1-1-03.)