Partnerships

Partnership problem

Q: Briefly, my dad and my uncle entered into a partnership, the business was for 60000, they only had to pay 12000 initially so they took out 6000 each and the balance 48000 because the shop had stock they would pay off by selling the goods in the shop, over some time my uncle took out his share of 6000 from the shop my father did not say anything, initially it was agreed one member of his family would stay with him on the shop, this went on for only a little while, less than a year and then none started turning up, my father was looking after the shop on his own, over period of 10 years the shop was not doing well, when I started helping my dad the wholesale business which it was initially was bad, I agreed with my father that we change the business and also terminate the so called partnership, I was new blood, we worked out capital in the business with the intention of paying off my uncle, this was in 2004 when my dad talked to him my uncle said don't worry well sort out, I more or less started from zero, bought hardware goods from another relative on credit and started changing the business into hardware, gradually alhamdulillah I started doing well, numerous times I called my uncle, so did my dad and my mum that we sort this matter out, my uncle always said, have I ever asked you for anything, do you think I will do injustice with u, don't worry well sort out, and always shrugged it off and I never forced him out of respect and his promise and also because over time he had become very very rich in his own businesses, over a period of 15 years neither my uncle nor his sons ever even entered the shop or asked anything or asked for dues etc. Even when I made a big loss which everyone in town got to know including them, they didn't even ask how and why, someone ran away with my money, even when I built buildings, bought cars, changed the name of the shop, not a single question alhamdulillah by the grace of Allah I started doing well, I and my younger brother and our wives worked day and night and Allah gave barakah and now all of a sudden my uncle has passed away and after all these years the sons are asking for a share, now the business is worth millions, my dad had retired more or less as soon as I changed the business from wholesale to hardware, everything that had gone well was with my brothers and my family effort and sweat, and by the will of Allah, not a single penny of input from my uncle or his sons, my mum phoned my uncle numerous times that we terminate the partnership, this was before I had started doing well and my uncle reply was the same, that why you worried, I won't take away anything from you etc, immediately after he suddenly passed away, the sons have come running for a share but didn't care about anything from 1978 to 2015, what do I do now, if they force me to give them half of everything I have which I did from my own effort and capital and Allah's will I will take my uncle to task on day of qiyamah because he did not tell his sons what he had told me, my mum and my dad. Please advise what I should do now?

Sharing in the profits as well as the losses in an investment

Q: My bother passed away and his five kids and widow are in my supervision. Even though I am a lady but Alhamdulillah I did my best. Alhamdulillah now my brothers property problem is also solved and Alhamdulillah they received some money. They are not capable of handling this amount. No one in relatives are responsible enough to keep this Amanath for them. And may Allah Ta'ala forgive me I don't trust anyone for their money. I don't want to keep it in the bank and collect interest on their money. So with several god fearing peoples advise I invested their money in a certain brothers clothes store. He said for every 1 Lakh Rs he will give 1 thousand as profit. He said he can give more than that because he is saving lot more in interest. He said he will fix this minimum amount. And Allah forbid if in case he has loss in his business he will sell his house and give the money back to us. I got everything in writing for my brothers widow and her children's name. Alhamdulillah this brother himself is a very pious person. And spends lots of his time besides business in Dawah work. So mufti sahib please advise me if I did it right?

Demise of a partner

Q: Two brothers are partners in a property which generates monthly rentals. The one partner passed away recently (may Allah Ta'ala forgive him). Now that the one partner has passed away, does it mean that the living partner and the heirs of the deceased partner automatically become joint partners? How should the property be distributed now? Can the one party purchase the 50% share from the other party? The living partner wishes to give his 50% share in the property to his three daughters. Can he do this? If yes, does he require consent from the heirs of the deceased partner? Also, how should he actually carry out this transfer? If he merely has a document drawn up wherein, he wilfully transfers ownership of his share (gifts it) to his daughters and has an independent person sign on his behalf, or merely verbally mentions this in the presence of two witnesses, will this be in order?

Business proposal

Q: I have been offered a business proposal to be a shareholder in a new company by a businessman who is going to be the financier of the business. The offer is as follows:

(1) Better my current salary where I am currently working.

(2) 30% shares of the business.

He is also basing this decision on my knowledge and contacts that I have on the nature of this business. We have both agreed to have everything in writing at the right authorities. Please advise on how I should go about doing it.

Partner Renting a premises in which he is a shareholder, and determining his rental

Q: There are four equal partners in a building. One partner is renting a premises within this building. This partner does not want the annual increase in rental to apply to him as it applies to all the other tenants. Is it permissible for this partner to enjoy this advantage over the other partners and the other tenants?

Partners agreeing to buy off the share of the other in the event of death

Q: Two shareholders in a company came to an agreement to buy each other’s share in the company at the death of either one of the shareholders at an agreed price. This is to ensure the future of the company and also to guarantee a purchase price and a buyer for the shares. Funding of the purchase is by means of life assurance by the shareholders on each other’s lives. Both shareholders are Muslim and their wills are Shariah compliant. Is the buy and sell agreement between the two shareholders acceptable within the Shariah principles?