Is the second partner allowed to demand the return of the money paid for the company name upon dissolution of the partnership, and is this money considered like a penalty clause, and can the new partner demand the money he paid, or is he to be content with taking assets equal to half of the company's capital, based on the prior agreement?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The new partner, by virtue of his 50% share, owns half of the company's total assets, including its trade name, especially if the name has a monetary value.
It is not permissible to stipulate that the new partner is not entitled to his share in the trade name upon dissolution of the partnership. Rather, the trade name is to be valued and sold like any other company asset.
It is not necessary to pay the partner in kind from the assets; rather, they are sold or valued upon dissolution, and each partner is given his share of the capital and profit.
Losses are borne by all partners, each according to his share in the capital.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/169510
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 169510
- 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