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Is it permissible to mix personal funds with the funds of a joint commercial project while recording all transactions in a ledger, and can one dispose of the project's personal funds as long as it is clearly recorded in the ledgers?

1 min readAlso available in العربية

Partnership (Sharikah) and Mudarabah contracts are based on agency (wakalah) and trust (amanah). It is not permissible for the Mudarib (agent) or partner to dispose of the funds of the partnership except in a manner that serves its interest and within the limits of the granted permission. Personal use of the company's funds, such as engaging in side trade with them, is not permissible and is considered an infringement (ta'addi) that necessitates compensation (dhaman) if the money is lost, because the hand of trust (yad al-amanah) becomes a hand of guarantee (yad dhaman) through infringement. Therefore, registering the funds does not permit their disposal as private property.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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