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What is the ruling of the Shari'ah concerning two partners who seized a sum of money from the company's public fund to establish a warehouse in their names, and they refuse to have it appraised at the current market value despite the doubling of prices?

1 min readAlso available in العربية

It is not permissible for partners to take an amount of money from the company's fund to purchase land and build a warehouse without the permission of the other partner, because a partner's disposition of company funds is based on agency, and an agent may not act without the principal's permission. If the partner ratifies this purchase, it is valid, and the company owns the land and the warehouse, and the partner owns a share of them commensurate with his stake. If the purchase is not ratified, the sale is binding on both partners, and they bear its consequences. If their action was intended to be for their personal benefit, then it belongs to them, and they are liable for what they overstepped from the company's funds.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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