What is the ruling on adhering to a pre-agreed distribution of profits without withholding them or reducing a partner's share, and what are the rights of a partner if he wishes to withdraw?
The general rule for partnerships is to distribute profits after the completion of their cycle. It is permissible to take money on account if profits have materialized and the amount does not exceed the partner's share. It is not permissible to distribute profits before they materialize. It is permissible to retain a portion of the profit for reserves or company development with the partners' consent. Agreements must be adhered to, as Allah (the Most High) says: "O you who have believed, fulfill [all] contracts."
A partnership contract is not binding, and any partner may terminate it unless the partnership is for a specified duration and other partners would be harmed. However, if the partners insist on violating the agreement, the partner has the right to terminate it. Withdrawal from the partnership is done through a "judicial liquidation," which involves evaluating the company's assets at market price to determine the profits, whereupon the partner receives their capital and a percentage of the profit. Judicial liquidation is carried out by experts, and the fair market value is considered for the valuation. Any partner has the right to withdraw from the company by taking their share, and this does not affect the continuation of the partnership among the remaining partners.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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