Is it permissible to consider additional money paid by partners in an existing company—managed by one of them—as Mudarabah capital, such that the company is the Mudarib (entrepreneur/manager) and the payers are the Rabb al-Mal (capital providers)?
The company can obtain additional funds by increasing the share of the partner who pays them, or by increasing the number of partners if the money comes from non-participating individuals. The funds can also be in the form of (a partnership in profit), whether from a partner or someone else, provided that the owner of the capital and the partners or the authorized manager agree. In the case of Mudarabah, the profit ratio for both the capital owner and the Mudarib (the company) must be specified, and the capital is not guaranteed. The Mudarib bears the loss in terms of their effort, while the capital owner bears the financial loss.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/65422
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 65422
- 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