(a) If the directors of a corporation do not generally care for and maintain the corporation’s perpetual care cemetery, the district court of the county in which the perpetual care cemetery is located may:
(1) by injunction compel the directors to expend the permissible distributions from the corporation’s fund as required by this chapter; or
(2) appoint a receiver to take charge of the fund and expend the permissible distributions from the fund as required by this chapter.
(b) The suit for relief under this section must be brought by at least five owners of plots located in the perpetual care cemetery.

Terms Used In Texas Health and Safety Code 712.026

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.

(c) In a suit for relief under this section, court costs and attorney’s fees shall be awarded:
(1) to the directors of the corporation, if it is found that the directors are substantially expending the permissible distributions from the fund as required by this subchapter; or
(2) to the plot owners initiating the suit, if it is found that the directors are not substantially expending the permissible distributions from the fund as required by this subchapter.
(d) Fund assets may not be used to pay court costs and attorney’s fees awarded under Subsection (c).

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