Is zakat obligatory on shares sold after the distribution of profits and purchased before the distribution of profits for the following period, or is the company's payment of zakat sufficient?

Zakat on shares is obligatory upon their owners. The company's management is responsible for disbursing it on their behalf if stipulated in its articles of association, or by state law, or by a resolution of the general assembly, or by authorization from the shareholder. The company disburses the Zakat like a natural person, and the portion of non-zakatable shares is deducted.

If the company does not disburse the Zakat, then it becomes obligatory upon the shareholders to pay Zakat on their shares.

If the company has paid Zakat on the shares, and then they are sold and bought before the distribution of profits, and the company has already paid Zakat on them, then the shareholder is not obligated to pay Zakat again. If the shares are sold after that, then their price is subject to Zakat if a full year passes while it is in his possession, or if it is converted into gold, silver, or trade goods; for the hawl (one-year period) for cash and trade goods is the same. If the money is intended for personal acquisition (not trade), then the hawl is interrupted, and there is no Zakat due on it.

The majority of jurists stipulate the intention (niyyah) for the validity of Zakat payment. If the company disburses the Zakat, it is necessary to inform the shareholders of this intention beforehand, as it is a condition for the validity of Zakat.