Withdrawing from a partnership if it deals in what is forbidden
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Fatwa number ( 17379 )
Q: A company consisting of several people was established with a capital of approximately two hundred and thirty million riyals (230,000,000) for the purpose of establishment, but the factory has not yet begun production. It now needs an additional fifty million (50,000,000) to start production. Since the partners do not have the ability to pay the required amount, which is fifty million for operations, everyone decided to take a loan from the bank with an interest-based increase. One of them refused and said: "We will not take from the bank through riba (usury or interest)." The others said to him: "We will take it, because we have nothing, and you should bring cash from your own wealth, or borrow through a non-interest-based method." The question: Is it permissible for the one who does not want to borrow from the bank through riba (usury or interest) to remain with them in this company if he brings money for his share through a non-interest-based method? It is known that they told him: "Or sell your share," and he says: "If I offer my share for sale, I may not find a buyer, and if I do find one, I may find it at a loss." It is known that I do not have the right to sell except to one of the partners, and thus they will control the purchase price, and likewise the right to sell
after two years of operation to the partners or others.
A: I advise you not to partner with them; because their actions indicate a leniency toward riba (usury or interest) and a lack of concern about entering into it. And whoever leaves something for the sake of Allah, Allah will replace it with something better. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his companions.
Q: A company consisting of several people was established with a capital of approximately two hundred and thirty million riyals (230,000,000) for the purpose of establishment, but the factory has not yet begun production. It now needs an additional fifty million (50,000,000) to start production. Since the partners do not have the ability to pay the required amount, which is fifty million for operations, everyone decided to take a loan from the bank with an interest-based increase. One of them refused and said: "We will not take from the bank through riba (usury or interest)." The others said to him: "We will take it, because we have nothing, and you should bring cash from your own wealth, or borrow through a non-interest-based method." The question: Is it permissible for the one who does not want to borrow from the bank through riba (usury or interest) to remain with them in this company if he brings money for his share through a non-interest-based method? It is known that they told him: "Or sell your share," and he says: "If I offer my share for sale, I may not find a buyer, and if I do find one, I may find it at a loss." It is known that I do not have the right to sell except to one of the partners, and thus they will control the purchase price, and likewise the right to sell
after two years of operation to the partners or others.
A: I advise you not to partner with them; because their actions indicate a leniency toward riba (usury or interest) and a lack of concern about entering into it. And whoever leaves something for the sake of Allah, Allah will replace it with something better. 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.