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Fatawaa - Search Sections - Partnership in Business

The Legal Characterization of School Cafeterias and their Rules under Sharia

What is the legal characterization/classification of school cafeterias and what are the Sharia rules governing them? 

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Partner`s Liability in Limited Liability Company

What is the ruling of Sharia in case a limited liability company failed to pay the rent and what is the amount for which each of the partners is liable?

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Ruling on Paying Salary to Non-Working Partner from Company`s Profits

A fuselage was purchased to be turned into a restaurant based on a contract of partnership and employment. The first party is responsible for bringing this fuselage to a certain location while the second shall do whatever is needed to equip this restaurant to the fullest. In order to safeguard the financial rights of the first party, one point of the contract stipulated the following: "The second party shall pay (1000 JDs), at the minimum, to the first party from the monthly revenues and for each month, except during forced closures and in the incidence of storms and inactivity resulting from force majeure." After asking about this, we were told that it is unlawful to determine this percentage at a certain sum for this is usury (Riba). Therefore, it was suggested to adjust the above point into one of the following alternatives: First, the second party shall pay a monthly salary (1000 JDs) to the first party, although the latter party won`t be working on the project. Second, the second party shall pay (1000-1500 JDs), at minimum, to the first party from the monthly profits. In light of this, is determining a percentage from the profits, as indicated above, unlawful according to Sharia?

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Ruling on Spreading Rumors to Increase Stock Prices

One economic group plans to spread rumors to increase the stock prices of a certain company. Is it permissible that I buy the stocks of this particular company prior to the increase so that I sell them latter for a higher price. In fact, I have neither the power nor the potential to stop this group from doing that because they work on an international level, and I can`t even tell the people about the truth of the matter because it happens suddenly. However, the company`s work and stocks are, in principle, lawful.

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Ruling on Debts for which Modern Corporations are Liable

What is the stand of Sharia on investing in a corporation, which trades in lawful goods, and has a separate legal entity? And the fact that partners aren`t required to pay off that corporation`s debts from their own wealth as they are the liability of the corporation itself?

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Ruling on Partner Withdrawing from Share in Capital before Execution of Project

Two partners have agreed to execute a housing project. One of them pays a certain amount in cash and the other pays whatever is needed to finish the project. However, after purchasing the land upon which the houses were supposed to be built, one of them withdrew some amounts from his share in the capital of the company before the execution of the project. How should the profits be divided?

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A Partner is Permitted to Rent his Share to his Partner

Is a partner permitted to rent his share to his other partner against a fixed monthly payment?

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Took a Loan from a Company and Decided to Return it after it Closed down

What is the ruling on one who has taken a loan from a company with the intention of not paying it back? However, after sometime, he decided to return it, but found out that the company had closed down, most debts were lapsed, and owners changed. Is it permissible to give that money to public or private institutions as charity on behalf of its owners?

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Ruling when Capital Provider Stipulates Participating in Mudarabah Business

Is the capital provider/owner allowed to participate in the Mudarabah business?

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Ruling on Trademark of a Mudarabah (Partnership)

Upon liquidation of a Mudarabah business for profit calculation, the market value of its trademark has skyrocketed. Should that value be calculated as profit for both partners or only for the financier or capital provider?

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Ruling on Subscribing in Social Takaful Insurance

What is the ruling on the Military Credit Fund subscribing in Social Takaful Insurance?

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Ruling on not Disclosing Financial Information to New Partner

Is it permissible not to disclose the financial situation of a General Partnership Company, which is up to its ears in debt, to a new partner under the pretext of maintaining reputation?

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How to Liquidate a Business

A father and his two sons have become partners in a certain business. However, after a while, the father and one of them withdrew their money causing that business to close down. Is it permissible for their partner to demand settling the mutual accounts of that business?

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Depreciation on Fixed Assets should be Covered by Rentier

Is it permissible to deduct the amount of depreciation on fixed assets from the agent`s/Mudhaarib`s share in the profit of a partnership contract/Mudhaarabah contract?

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Purchasing Common Land isn`t Aleatory

What is the ruling of Sharia on purchasing common land by drawing of lots?

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