Specifying Some Partners in the Profit
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Fatwa No. ( 21711 )
Q: A company in which a number of people contribute to the capital with equal shares, for example (1000 riyals from each shareholder), operates and invests those funds. All the shareholders have agreed (as a clause in the terms of joining the company) to distribute the profits at the end of each year in the following manner: * The operating costs + zakah are deducted. * A number of shareholders are selected (by lottery), and the remaining net profits are distributed equally among them, in addition to their capital. They then exit the company. This is repeated every year, taking into account (the increase or decrease) in the number of those selected, based on the ratio of profits realized each year.
Is there any conflict between what is mentioned above and the teachings of our lenient religion? May Allah reward you with good.
A: The method mentioned is not valid; because it specifies some partners in the profit and deprives some of it. It is obligatory to distribute the profit among all of them, each according to the proportion of his capital, even if it is small. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q: A company in which a number of people contribute to the capital with equal shares, for example (1000 riyals from each shareholder), operates and invests those funds. All the shareholders have agreed (as a clause in the terms of joining the company) to distribute the profits at the end of each year in the following manner: * The operating costs + zakah are deducted. * A number of shareholders are selected (by lottery), and the remaining net profits are distributed equally among them, in addition to their capital. They then exit the company. This is repeated every year, taking into account (the increase or decrease) in the number of those selected, based on the ratio of profits realized each year.
Is there any conflict between what is mentioned above and the teachings of our lenient religion? May Allah reward you with good.
A: The method mentioned is not valid; because it specifies some partners in the profit and deprives some of it. It is obligatory to distribute the profit among all of them, each according to the proportion of his capital, even if it is small. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.