Filing Statements Of Denial

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Allen Matkins

The California Uniform Partnership Act of 1994 permits, but does not require, a general partnership to file a statement of partnership authority with the California Secretary of State's Office.   Cal. Corp. Code § 16303.  Among other things, the statement must disclose either:

  • the names and mailing addresses of all of the partners; or
  • the name and mailing address of an agent appointed and maintained by the partnership to provide the names and mailing addresses of all the partners.

The statute provides that a filed statement of partnership authority "supplements" the authority of a partner to enter into transactions on behalf of the partnership.  Other than transfers of real property, a grant of authority in a filed statement is "conclusive" in favor of a person who gives value without knowledge of the contrary, "so long as and to the extent that a limitation on that authority is not contained in another filed statement".   Cal. Corp. Code § 16303(d)(1).   A similar rule applies with respect to transfers of real property held in the name of the partnership when a certified copy of a sttement of partnership authority is recorded in the office for recording real property transfers.  Cal. Corp. Code § 16303(d)(2).

What if you are named in a statement of partnership authority but disagree?  Section 16304 permits a partner or other person named as a partner in either the statement of partnership or the list maintained by the agent to file a statement of denial.  A statement of denial is a limitation on authority as provided in Section 16303.   A statement of denial is not the same as a statement of dissociation.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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