Tenn. Code Ann. § 46-1-205
This is the official text of Tenn. Code Ann. § 46-1-205, part of Tennessee’s Code Ann — part of the compiled statutory law of Tennessee, published by the state as "Code Ann." Browse the sections below, each linked to its official government source.
Not legal advice. This page reproduces the official text of a government statute for reference only. Laws change, and how a statute applies depends on your specific facts. For advice about your situation, consult a licensed attorney in your state.
Payment of dividends - Restrictions - Recovery
Official statutory text
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. Acts 1927, ch. 75, § 6; mod. Code 1932, § 3928; Acts 1968, ch. 557, §§ 2, 4; T.C.A. (orig. ed.), § 46-111; Acts 1976, ch. 773, § 8; T.C.A., §§ 46-211, 46-2-111; T.C.A., § 46-2-305 ; Acts 2006, ch. 1012, § 3.
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.
Acts 1927, ch. 75, § 6; mod. Code 1932, § 3928; Acts 1968, ch. 557, §§ 2, 4; T.C.A. (orig. ed.), § 46-111; Acts 1976, ch. 773, § 8; T.C.A., §§ 46-211, 46-2-111; T.C.A., § 46-2-305 ; Acts 2006, ch. 1012, § 3.
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.
Acts 1927, ch. 75, § 6; mod. Code 1932, § 3928; Acts 1968, ch. 557, §§ 2, 4; T.C.A. (orig. ed.), § 46-111; Acts 1976, ch. 773, § 8; T.C.A., §§ 46-211, 46-2-111; T.C.A., § 46-2-305 ; Acts 2006, ch. 1012, § 3.
Status: in_force
Need a lawyer in Tennessee?
Find a Tennessee lawyer
About this page: Statute text is reproduced from official government publishers via the
Open US Law dataset
(Vaquill AI, snapshot v2026.08, CC BY 4.0). Primary legislative text like this is public domain under the government-edicts doctrine
(Georgia v. Public.Resource.Org, 2020). We link every section back to its official source so you can verify it independently.