How are partners' shares distributed upon liquidation of the company after capital loss, given that one of the partners did not pay capital but worked as the company's manager by agreement?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The company manager is an employee with a known wage, and he does not bear any loss unless there is transgression or negligence on his part. His being a partner with an imaginary capital is not permissible. The percentage allocated to him from the profit is not due to him because there is no profit; he only gets his daily wage. As for the two partners, each bears the loss in proportion to his share in the company's capital.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/124996
Where this answer came from
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- Ftawy
- Original fatwa ID
- 124996
- 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