What is the ruling on money obtained from selling company machinery after the managing partner fled, and should the surplus be distributed among the remaining partners after the full capital has been recouped, and does the partner who pledged to guarantee the funds have a share?
It is not permissible in a Mudarabah contract to stipulate that the agent guarantees the capital. If such an agreement is made, the contract is فاسد (voidable/corrupt), and all profits belong to the owners of the capital, while the agent receives a wage equivalent to the customary wage (أجرة المثل). If the company is profitable, the agent returns the capital and profits. If it incurs losses without negligence, the loss is distributed among the partners proportionally to their capital, and the agent loses their labor. However, if the loss is due to their negligence, they bear it and are obligated to return the capital. The hand holding the company's money is a hand of trust (يد أمانة), and the partner is not liable except in cases of transgression (تعدي) or negligence (تقصير). In the event of fraud or negligence by the Mudarib (agent), they guarantee the capital. The guarantor does not guarantee the money itself, but rather guarantees against transgression or negligence. The machinery that belonged to the company is sold, and its price is distributed among the partners according to their capital contributions. Whoever undertakes the sale and recovery of the machinery is entitled to receive a wage equivalent to the customary wage (أجرة المثل) for their effort.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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