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The question

Is it permissible for a company with investors who share in profits and capital for a limited period, to open a new branch wholly owned by it from its net profits, without harming the first branch or breaking prices?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

There is no impediment for the company owners to trade with their private funds in an activity similar to the activity with others' funds without their knowledge. However, if the Mudarabah contract with the investors was based on a percentage of the capital, not the profit, or if it included a condition guaranteeing the capital, then this Mudarabah contract is invalid.

Summarized from the full answer at Ftawy · imported

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
171885
Imported
Translation status
Source text, unreviewed
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