What is the ruling on taking the capital of a Mudarabah (partnership) and a loan from the debtor partner, and is it permissible to demand compensation for the salaries he received?

First: If you lend your friend money without stipulating its participation in the company, there is no harm in that, and you may later participate with it by agreement. However, if you lend it to him on the condition that he participates with it, there is a difference of opinion among jurists. The majority forbid stipulating an exchange contract along with the loan, based on the hadith (definition): "It is not permissible to combine a loan and a sale." However, partnership is not an exchange contract; hence, the Hanafis permitted it, while the majority disagreed. The most likely correct view is permissibility, as long as it does not lead to an increase in return for the loan.

Second: It is not permissible to specify a fixed salary or a lump sum for a Mudarabah (definition) agent. Rather, he is entitled to an agreed-upon percentage of the profit. If a salary is stipulated, the Mudarabah is invalid, and the agent is entitled to "the customary profit," which is what is customary in such Mudarabah arrangements.

Third: If a loss occurs in Mudarabah without negligence or transgression from the agent, the loss is borne by the capital owner. The agent guarantees the capital if he was negligent or transgressed. The borrower can be demanded to repay the loan because it is guaranteed by him. As for the Mudarabah capital, if there was transgression or negligence from the agent, he guarantees it; otherwise, he does not.

Fourth: The Mudarabah agent must return the salaries he took, because when the Mudarabah is invalid, he is entitled to "the customary profit," and since there is no profit, he is entitled to nothing.