Page 427 - Important Provisions of The New Civil Code

Article 1808. The capitalist partners cannot

engage for their own account in any operation

which is of the kind of business in which the

partnership is engaged, unless there is a

stipulation to the contrary.

Any capitalist partner violating this prohibition

shall bring to the common funds any profits

accruing to him from his transactions, and shall

personally bear all the losses. (n)