Tennessee Code 46-1-205 – Payment of dividends – Restrictions – Recovery
Terms Used In Tennessee Code 46-1-205
- Cemetery: means any land or structure in this state dedicated to and used, or intended to be used, for interment of human remains. See Tennessee Code 46-1-102
- Cemetery company: means an individual, partnership, corporation, or association, now or hereafter organized, owning or controlling cemetery lands or property and conducting the business of a cemetery. See Tennessee Code 46-1-102
- Cemetery operator: means any owner, director, principal, manager, member, stockholder with a majority ownership interest, or other person who has any ownership interest in, or has any control over, the financial operations of a cemetery company. See Tennessee Code 46-1-102
- Commissioner: means the commissioner of commerce and insurance. See Tennessee Code 46-1-102
- Improvement care: means the continual maintenance of the cemetery grounds and graves in keeping with a properly maintained cemetery, including cutting of grass, raking and cleaning of cemetery plots at reasonable intervals, and pruning of shrubs and trees. See Tennessee Code 46-1-102
No dividend, salary or compensation of any description shall be paid to any stockholder of any cemetery company or any cemetery operator until the company has first set up the improvement care trust fund in the manner and amount provided in § 46-1-204, and no dividend, salary or compensation shall be paid to any stockholder of any cemetery company or any cemetery operator while any improvement care trust fund is deficient because of not having received the payments required by § 46-1-204; provided, that a receiver, as provided for in this chapter, may pay the salaries and compensation that the receiver deems necessary to restore the cemetery to a sound financial condition. Any dividend, salary or commission paid in violation of this section shall be recoverable at the suit of the commissioner, any lot owner, or descendant or next of kin of a lot owner, in the circuit or chancery court, and all stockholders of the cemetery company and cemetery operators receiving the unlawful dividends, salaries or compensation may be joined in the same suit. The proceeds of the suit or claim shall be added to the improvement care trust fund to assist in making the fund current.