Partnerships

Q: There is a company called 3A Alliance. The comapny take's money from people for investing. They have a motorcycle company called Supreme. They take your money in advance which is RS,21 600. The total amount for the bike is RS,36 000 and they say that after 35 days we should come take the bike or sell it back to them. It means that they sell it to other wholeseller's across the city and once you have invested this Rs,21 600 amount they order a bike by your name every month and sell it to other's and give you some of the profit which is Rs,3500. It sometimes goes up and down every 2/3 month's

Is this halaal or haraam? The company also deals with other home appliannces like TV, refrigrators, water purifiers and they also say that if you don't like our company you can take whatever it is you have invested.

Q: If I invest 25 lakh rupees in a business of grocery items on the condition that I am allowed to take groceries worth 25,000 rupees per month, will it be halaal?

Q: 20 years ago, Mr. Zaid invested Rs. 50 lakh in a business. All the items were purchased from his money and it was decided that he would get 25% of the profit. The other partner agreed on working in the store. Mr. Zaid also kept on visiting the store until he got sick 5 years back. Now if he wants to end the business with mutual agreement, will he get Rs. 50 lakh? Or since the value of the money has increased alot, he will get extra benefit?

Q: I gave R500 000 to a factory owner as an investment. Every single month, he gives me R30 000. Is that R30 000 halaal or haraam?

Q: Six brothers are in partnership in a portfolio of various properties. One of the brothers would like to exit. He would exit by taking his equal share in the form of properties. This would incur capital tax gain payments to the tax authorities and transfer and stamp duty payments. From a Shar’ee point of view, who would be liable for capital tax payments and transfer and stamp duty costs? Would it be the buyer (the brother exiting) or the sellers (the remaining five brothers)?

Q: We are in a partnership with two non-Muslim parties. Our shares in the partnership are 30%, 40% and 30%. Initially, the profit was to be divided as per this ratio when the job was completed. It has now emerged that doing the actual work will require additional time and management. This can either be sourced from an outside consultant or can be carried out by one of the shareholding parties. The other two parties are happy to appoint the third party to do the work for an extra fee. Islamically, is this agreement permissible?

Q: I placed my partner's money overseas without his knowledge. In December we decided to end the partnership and I worked out in dollars (R13.72) the amount owing to my partner and we signed. It is now April and the dollar price (12.02) has dropped. Do I now pay him out on the current dollar price. If we signed in December would it not be in accordance with Sharia to pay him on the dollar price at that time (13.72). Or everytime I pay must it be at current value.

Q: Is a business partner allowed to draw a salary over and above his profit percentage?

Q: We are 3 partners in a business. Two are complete silent partners. I am the only working partner. Is it permissible for me to draw out a salary in addition to my profit percentage that gets ?

Q: One Christian man invested in my business but unfortunately the business suffered a loss and I was in debt of 1 crore. This Christian man told me to give him interest every month and he put pressure on me and my family. What can I do according to shariah?