Back to search

Is the cash amount paid to be included in the company's assets and divided among the partners upon liquidation or the exit of one of the partners, or is it an inherent right of the party who paid it?

1 min readAlso available in العربية

The aforementioned company is a permissible form of Mudarabah (commenda partnership), where two individuals can participate with the capital of others. The profit is distributed between them according to the agreement stipulated in the Mudarabah contract. This is the view of the majority of scholars. The Mudaribs (agents/entrepreneurs) have no right to the capital itself; rather, their right is limited to a stipulated share of the profit, and the right of the capital owner takes precedence over theirs. If a profit appears in the Mudarabah, they are entitled to what was stipulated, otherwise, they receive nothing. Thus, the Mudarib is not entitled to any profit until the capital is recovered. The company's capital is the original right of its owner, while the questioner and his partner are only partners in the profit.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

Read the full answer on Ftawy