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1- Does a capital partner remain a partner in the company after their capital is destroyed? 2- Is a capital partner entitled to claim a share in the company's name after the capital is destroyed and they refuse to pay?

1 min readAlso available in العربية

If the mudarabah (profit-sharing) contract results in a loss, the loss is borne by the capital provider (rabb al-mal), and the worker (amil) loses his effort, unless he was negligent or exceeded his authority, in which case he bears the financial loss. If the partnership is dissolved, whatever remains of it is sold or appraised. The capital provider takes his original capital, and any amount exceeding that is considered profit to be divided between the two parties. Since the trade name and license have acquired monetary value, if the company name, its premises, or its equipment remain, they are sold or appraised, and their value is given to the capital provider to recover his capital. Any surplus is profit to be divided between them. In the case of a loss, the value of the remaining assets will often not cover the original capital, so it all goes to the capital provider, and there is no profit for the worker. The worker is not entitled to seize the company's name, premises, or equipment, as they belong to the capital provider. The two parties can agree that the worker may take them at their value, or they can continue the partnership as a new company, in which the capital provider participates with the value of the assets, and the worker participates with his own funds.

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

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