Not giving the profit to the shareholders

Q: If you had given someone a sum of money to invest in a property but they are now constantly making excuses not to give the money or the profit to you (but you don't know their situation - maybe they are struggling) would that be considered as just a debt or stealing? Does it make their income haraam? For instance, if they are hosting a function, would it be permissible to attend and partake of the food?

A: If they are making profit in the business, then it is compulsory upon them to give the shareholders their share of the profit which was mutually agreed upon. If they are taking all the profit for themselves and are not giving the shareholders their share of the profit, then this is not permissible.

They should be advised that if they wish to do works of kindness to people by extending invitations to them or hosting functions etc, then the correct way in Shariah is that they first start off by doing those works that are compulsory upon them before doing those works that are mustahab or permissible. Hence, they should first pay the dues that they are owing people before extending invitations or hosting functions.

And Allah Ta'ala (الله تعالى) knows best.

 

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)