How is Zakat calculated on shares, and is Zakat obligatory upon the shareholder if the company has already paid Zakat on its wealth?

Zakat is obligatory on shares, and the company's management disburses it on behalf of the shareholders if its articles of association stipulate so, or by a resolution of the general assembly, or by state law, or by authorization from the shareholder. The company disburses the Zakat as a natural person, considering all shareholders' funds as the wealth of one person, deducting the share of shares not subject to Zakat.

If the company does not pay Zakat, then the shareholders must pay Zakat on their shares. If it is possible to determine the share's portion of Zakat, the shareholder pays Zakat accordingly. If not: - If the shares are for benefiting from their income, Zakat is on the income after its [completion of] hawl (quarter of a tenth). - If they are for trade, they are subject to Zakat as trade goods, by valuing them (quarter of a tenth, 2.5% of the value and profit).

If the shareholder sells his shares during the hawl, he adds their price to his wealth and pays Zakat on it along with his wealth when its hawl is due. The buyer pays Zakat on the purchased shares as mentioned.