Also known as: § 306 · section 306 stock · IRC § 306 · Section 306 stock
Written by attorneys · grounded in primary & secondary sources — see below
3 senses
A statutory rule providing that maintenance or support provisions in a divorce decree may be modified only as to future installments and only upon a showing of changed circumstances so substantial and continuing as to render the terms unconscionable. Property dispositions in the decree generally may not be revoked or modified absent conditions justifying reopening of the judgment.
A statutory rule providing that a debt, obligation, or other liability incurred while a partnership is a limited liability partnership is solely that of the partnership. A partner is not personally liable for such an obligation solely by reason of being or acting as a partner, and the protection survives dissolution.
A procedural rule directing that when a petition or comparable pleading is received by an inappropriate tribunal of the state, the tribunal must forward the pleading and documents to an appropriate tribunal in the state or another state and notify the petitioner of the transfer.
Each sense below has its own examples, sources, and questions.
A statutory rule providing that maintenance or support provisions in a divorce decree may be modified only as to future installments and only upon a showing of changed circumstances so substantial and continuing as to render the terms unconscionable. Property dispositions in the decree generally may not be revoked or modified absent conditions justifying reopening of the judgment.
Sarah Sullivan and her former spouse obtained a divorce decree that incorporated their separation agreement allocating farm property and waiving maintenance. Two years later a drought caused Sarah to sell acreage at a loss, prompting her to move for modification of the property, debt, and maintenance terms. The court considers whether the decree's silence on nonmodifiability allows review under the changed-circumstances standard for support provisions.
Those terms track the decree's ordinary modifiability rules. Maintenance remains subject to the changed-circumstances standard unless the decree expressly precludes modification. Property divisions are generally final once incorporated.
A statutory rule providing that a debt, obligation, or other liability incurred while a partnership is a limited liability partnership is solely that of the partnership. A partner is not personally liable for such an obligation solely by reason of being or acting as a partner, and the protection survives dissolution.
Santiago Sanchez and his partners converted their general partnership to a limited liability partnership before signing a new services contract with a client. After a mishap during performance, the client sued the individual partners personally. The court examines whether the obligation arose while the partnership held LLP status, thereby confining liability to the entity alone.
No. The statute expressly states that failure of a limited liability partnership to observe formalities relating to the exercise of its powers or management of its business is not a ground for imposing liability on a partner.
The shield attaches when the obligation is incurred while the partnership is a duly qualified limited liability partnership. Later dissolution or retirement of partners does not remove the protection for obligations incurred during the qualification period.
Generally no. The statute overrides inconsistent terms in the partnership agreement and focuses on the timing of the obligation. A reference to an earlier personal-liability term in a post-conversion contract does not automatically impose partner liability when the operative contract and incident occur after conversion.
Only if the statements establish an independent obligation separate from partnership status. Routine communications made while advancing the firm's proposal remain protected. A standalone personal warranty or inducement may support a separate claim.
A procedural rule directing that when a petition or comparable pleading is received by an inappropriate tribunal of the state, the tribunal must forward the pleading and documents to an appropriate tribunal in the state or another state and notify the petitioner of the transfer.
Sierra Santos filed a child-support petition in a local court that lacked jurisdiction over the out-of-state respondent. The clerk recognized the filing as improper and transmitted the documents to the correct interstate tribunal while informing Sierra of the new location and filing date.