What is the legitimate right, according to Sharia, of the brother who provided the entire capital to establish a textile factory, while his brother managed the factory without any financial contribution, and there was no explicit agreement between them regarding partnership or profit distribution for 15 years?
(commenda partnership) is only valid if there is an agreement on a specific percentage for profit distribution. If the Mudarabah becomes invalid, then, according to the majority of scholars, all profits belong to the capital provider, and the worker is entitled to an 'ajrat al-mithl' (a customary wage). Some jurists say he is entitled to a 'qirad al-mithl' (a customary share of profit).
The difference between 'qirad al-mithl' and 'ajrat al-mithl' is that 'qirad al-mithl' is contingent on profit, whereas 'ajrat al-mithl' is a liability upon the capital provider's responsibility, regardless of whether there is a profit or not.
Therefore, the first brother (the capital provider) is entitled to the entire profit, and the second brother (the worker) is entitled to an 'ajrat al-mithl', to be estimated by experts.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Ftawy
- Original fatwa ID
- 183647
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- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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- Read the full answer on Ftawy