Is it permissible for a partner working as a manager in a company to receive a monthly salary and 5% annually of the capital, in addition to his share of the profits as a partner?
It is permissible for one of the partners to manage the company for a fixed wage, through a separate lease contract independent of the partnership contract, in addition to his agreed-upon share of the profit.
It is not permissible for any partner to stipulate a percentage of the capital, because that leads to guaranteeing a portion of his capital and not bearing the loss if it occurs, and he might thereby obtain all the profit.
Ibn Qudamah said: "Whenever the share of one of the partners is made a known amount of dirhams, or a known amount of dirhams is added to his share, the partnership becomes void." This is because the partnership might not earn more than these dirhams, so the partner takes them in full, or it might not earn them, in which case he takes from the capital.
In summary, the managing partner may take: 1. A higher percentage of the profits in exchange for his management. 2. A known wage for management through an independent lease contract. It is not permissible for him or anyone else to take a percentage of the capital.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Original fatwa ID
- 17603
- Added here
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- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy