Back to search
The question

Is it permissible for two partners who own the larger share in a restaurant, the partnership of which was verbally agreed upon, to allocate a higher percentage of salary and tax returns to themselves without the knowledge of the third partner, and to later refuse to increase his share or salary as verbally agreed upon?

Share this answer

Source: FtawySummary from Ftawy's records · added here Sep 2, 20261 min readAlso available in العربية
The answer

Partnership is based on mutual consent as agreed upon by the partners, even if their shares in the capital differ, and each partner profits as stipulated. However, the requirement of justice dictates that profit and loss should be distributed between the two parties according to the proportion of capital contributed by each.

If an agreement on your percentage of profit has been reached, then that is it. If no agreement has been made, the partnership is invalid and must be dissolved. In that case, you have the right to reclaim your share, considering the profit or loss based on your 20% proportion. You are also entitled to a fair wage for your work concerning your partners' shares. If a dispute arises in estimating this wage, it can be referred to experts or the courts.

The monthly salary is considered an advance payment. If it is subject to decrease or increase after calculating the company's profits, then there is no harm. However, if it represents their fixed share of the profit, then the partnership is invalid and dissolved. If you wish to continue, you must establish a new contract with them, specifying the profit percentages and ownership for each of you.

Your partners have the right to refuse an increase in your capital. However, if they promised you this and you entered into the partnership on that basis, then the promise is binding on them, as the Prophet, peace and blessings be upon him, said: "Muslims are bound by their conditions."

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

Read the full answer on Ftawy
Where this answer came from
Source platform
Ftawy
Original fatwa ID
102895
Added here
. This is when the answer was added to El Fatwa, not the fatwa's date.
Text
Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
Read the full ruling
Read the full answer on Ftawy