Is the action of the managing partner, in taking donations from the company's fund without the knowledge of the other partners and recording them as expenses without their review, correct?
A partner acts on his own behalf and as an agent for his partners, and his actions are restricted by their permission. Therefore, he is not permitted to donate company funds without their permission. This is the view of the majority of jurists. The Malikis, however, made an exception for donating a small amount if it is for the benefit of the company. The arguments of the majority for prohibition are that donation is not in the interest of trade, it contradicts the company's objective of profit, and it harms its assets. Therefore, the manager should not donate from the company's funds except with the explicit permission and knowledge of his partners, even if he records it as an expense.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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