Opinion ID: 3051480
Heading Depth: 2
Heading Rank: 4

Heading: “Manifestly Unreasonable”

Text: Since the voting provisions of the Partnership Agreement do not forbid the limited partners from ratifying the actions of an interested general partner, the plain language of the Partnership Agreement places no limit on the ability of an interested general partner to participate in ratifying its own selfinterested transactions. However, in this case, PDC requires interested limited partner votes to ratify since only 46% of total unaffiliated units voted “yes” to the Merger. [12] California law permits a partnership agreement to vary or permit ratifications of violations of the duty of loyalty only if the provision doing so is “not manifestly unreasonable.” Cal. Corp. Code § 16103(b)(3).9 Thus, we are required to 9 California’s Uniform Partnership Act of 1994 reads, in relevant part: The partnership agreement may not do any of the following: