The Concept of Limited Liability
Q: Is the limited liability clause, which is found in all listed companies, permissible in Shari’ah? Without including this clause, a company cannot be legally registered as a listed company and this will pose restrictions on Muslims in the business world. If it is not permissible for Muslims to open listed companies on account of this clause, will it be permissible for Muslims to invest in these listed companies as they all have the limited liability clause?