Are the partners entitled to demand that the withdrawing partner pay back the monthly advances he received, and to claim compensation for the loss incurred to the capital, knowing that the partnership contract addressed profit and how to distribute it, but did not address loss?
This company operates on a basis, which is a multi-party partnership between capital providers and workers. It allows for multiple owners and workers. In a Mudarabah, the worker does not guarantee the capital unless there is negligence or dereliction of duty. If a loss occurs, the capital provider alone bears it, and the worker bears the loss of his effort. As for the amounts paid to the workers as a debt, any excess over their share of the profits must be repaid to the capital providers. If there is no excess, the capital providers have no right to claim it. If the amounts paid are less than the workers' share, they may claim the difference from the capital provider.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Ftawy
- Original fatwa ID
- 58084
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy