What is the ruling on the board of founders monopolizing the company's management and preventing shareholders from participating? What is the ruling on them taking 30% of the profits in exchange for their administrative work, in addition to the profits from their capital? What is the ruling on the company's participation with both capital and labor, and the right to establish it financially and administratively?
What you have mentioned about establishing a company, forming a board to manage it, the board receiving 30% of the profit, and distributing the rest to the shareholders, is what jurists call Qirad or Mudarabah.
1. It is permissible for the board to exclusively manage the company, as the board represents the Qirad agent, and Qirad agents have the right to manage funds. 2. The board taking a percentage of the profits in return for its work is valid, and it is a condition for the validity of Mudarabah. The board determining the percentage does not cause any harm. 3. Participation with both money and effort (badan) is permissible according to us, even if some scholars have prohibited it. 4. As for the right of financial and administrative establishment, one should inquire about it from the state where the company is located.
Summarized from the full answer at Ftawy · imported
Read the full answer on Ftawyhttps://ftawy.com/en/questions/80559
- Source platform
- Ftawy
- Original fatwa ID
- 80559
- Imported
- Translation status
- Source text, unreviewed
- Read the full ruling
- Read the full answer on Ftawy