How are profits to be divided between two partner engineers—one specializing in design and the other in execution—taking into consideration the differing cost and quality of work for each, and the existence of a 10% allocation for office development?
This type of company is called a "company of works" (sharikat a'mal), a "company of crafts" (sharikat sanai'), or a "company of bodies" (sharikat abdan). It is permissible according to the majority of scholars. The profit in such a company is distributed according to the agreement between the partners, regardless of the difference in their efforts.
Therefore, there is no harm in dividing the profit equally, or in favoring one partner over the other. There is also no harm in agreeing to deduct a percentage of the profits for company development, for forming a special reserve, or for maintaining a stable profit distribution rate.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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