Fatwa ID: 09502
Answered by Mufti Abdurrahman Mohammad
Question:
‘A’ is 100% investor. In 2011, we started a business shop. I am ‘B’, and I made no investment. We agreed to share profit 50%–50%. Now I want to take over the shop, or ‘A’ wants to take over the shop. So what can we do? Can I give the shop to ‘A’, or can I demand to take over the shop?
In the name of Allah, the Most Gracious, the Most Merciful
Answer:
This business was a Mudārabah partnership in which ‘A’ was the sole investor (Mudārib) and you were the partner with a 50-50 profit-sharing agreement. Since you did not contribute to the investment, you are only entitled to your share of profit. Therefore, the shop and its capital belong to ‘A’, while you are entitled only to your share of the profit, not ownership of the business itself. Since ‘A’ is the rightful owner of the shop and all its capital, you may not take over the shop.
The Mudārib (manager) has the right to partner someone else in a business under their control, and the profit is divided between them according to the agreed condition. When the profit is divided between them, the capital of the Mudārabah together with the Mudārib’s share of the profit is considered as one amount. From this, the owner of the capital first recovers his capital, and whatever remains is shared between them according to the agreement.
Only Allah ﷻ knows best.
Written by Mufti Abdurrahman Mohammad
Checked and approved by Mufti Mohammed Tosir Miah
Darul Ifta Birmingham
References:
وَلِلْمُضَارِبِ أَنْ يُشَارِكَ غَيْرَهُ شَرِكَةَ عِنَانٍ وَيُقْسَمُ الرِّبْحُ بَيْنَهُمَا عَلَى الشَّرْطِ وَإِذَا قُسِمَ الرِّبْحُ بَيْنَهُمَا يَكُونُ مَالُ الْمُضَارَبَةِ مَعَ حِصَّةِ الْمُضَارِبِ مِنْ الرِّبْحِ فَيَسْتَوْفِي مِنْهُ رَبُّ الْمَالِ رَأْسَ مَالِهِ وَمَا فَضَلَ يَكُونُ بَيْنَهُمَا عَلَى الشَّرْطِ هَكَذَا فِي الْبَدَائِعِ.
(Al-Fatāwā Al-Hindiyyah, vol. 4, pg. 300, Al-Maṭba’ah Al-Kubrā Al-Amīriyyah)