N.Y.
Limited Liability Company Law Section 1006
Conversion of partnership or limited partnership to limited liability company
(a)
As used in this article, unless the context otherwise requires, the term, “limited partnership” means a limited partnership formed under the laws of this state; and the terms “general partner,” “limited partner” and “majority in interest of the limited partners” shall have the meanings assigned to such terms in article eight-A of the partnership law; and the term “partnership” shall have the meaning assigned to such term in article two of the partnership law.(b)
A partnership or limited partnership may be converted to a limited liability company pursuant to this section.(c)
Subject to any requirements in the partnership agreement requiring approval by any lesser percentage in interest of partners, an agreement of conversion setting forth the terms and conditions of a conversion of a partnership to a limited liability company must be approved by all of the partners of the partnership. Subject to any requirement in the partnership agreement requiring approval by any greater or lesser percentage in interest of limited partners, which shall not be less than a majority in interest, the terms and conditions of a conversion of a limited partnership to a limited liability company must be approved (i) by such a vote of general partners as shall be required by the partnership agreement, or, if no provision is made, by all general partners, and(ii)
by limited partners representing at least a majority in interest of each class of limited partners. The agreement of conversion shall be submitted to the general partners and limited partners of a limited partnership at a regular or special meeting called on twenty days notice or such other notice as the partnership agreement may provide. A dissenting limited partner shall have the rights provided in article eight-A of the partnership law and shall not be a member of the converted limited liability company. Notwithstanding authorization by the partners of a partnership or general partners or limited partners of a limited partnership, the conversion to a limited liability company may be abandoned pursuant to a provision for such abandonment, if any, contained in the agreement of conversion.(d)
The agreement of conversion shall set forth the terms and conditions of the conversion of the interests of partners of a partnership or general partners and limited partners of a limited partnership, as the case may be, into membership interests in the converted limited liability company or the cash or other consideration to be paid or delivered as a result of the conversion of the interests of such partners, or a combination thereof.(e)
In connection with any conversion approved under subdivision (c) of this section, the partnership or limited partnership shall file with the department of state a signed certificate entitled “Certificate of Conversion of ... (name partnership or limited partnership) to ... (name of limited liability company) under section one thousand six of the Limited Liability Company Law” and shall also satisfy the publication requirements of § 206 (Affidavits of publication)section two hundred six of this chapter. Such certificate shall include either: (A) (i) articles of organization for such limited liability company in the same manner as if newly formed pursuant to § 203 (Formation)section two hundred three of this chapter;(ii)
a statement that the partnership or limited partnership was, in accordance with the provisions of this chapter, duly converted to a limited liability company from a partnership or limited partnership, as the case may be; and(iii)
The name of such partnership or limited partnership and in the case of a limited partnership the date its initial certificate was filed with the department of state, or: (B) where such partnership or limited partnership is being converted into a limited liability company formed pursuant to § 203 (Formation)section two hundred three of this chapter prior to the conversion, (i) the name of such partnership or limited partnership and in the case of a limited partnership the date its initial certificate was filed with the department of state;(ii)
a statement that the partnership or limited partnership was, in accordance with the provisions of this chapter duly converted to a limited liability company from a partnership or limited partnership, as the case may be; and(iii)
the name of the limited liability company and the date its articles of organization were filed with the department of state.(f)
If the limited partnership is a domestic limited partnership, such domestic limited partnership shall cancel its certificate of limited partnership pursuant to article eight-A of the partnership law. The certificate of cancellation shall include the name of the limited liability company and a statement that the limited partnership will be converted into a limited liability company upon the filing of such certificate.(g)
The conversion takes effect, in the case of a partnership, when the certificate of conversion is filed with the department of state or at any later date specified in the certificate of conversion or, in the case of a limited partnership, when the certificate of limited partnership is canceled.(h)
A partner or, in the case of a limited partnership, a general partner who becomes a member of a limited liability company as a result of a conversion, remains liable as a partner or general partner, as the case may be, for any debt, obligation, liability and penalty incurred by the partnership or limited partnership before the conversion takes effect. A limited partner who becomes a member as a result of a conversion remains liable only as a limited partner for a debt, obligation, liability or penalty incurred by the limited partnership before the conversion takes effect. The partner’s, general partner’s or limited partner’s liability, if any, for a debt, obligation, liability or penalty incurred by the limited liability company after the conversion takes effect is that of a member as provided in this chapter.(i)
A limited liability company whose original articles of organization were filed with the secretary of state and effective prior to the effective date of this subdivision shall continue to be governed by this section as in effect on such date and shall not be governed by this section, unless otherwise provided in the operating agreement.
Source:
Section 1006 — Conversion of partnership or limited partnership to limited liability company, https://www.nysenate.gov/legislation/laws/LLC/1006 (updated Dec. 4, 2015; accessed Dec. 21, 2024).
