Business and Dealings

Q: 

1. Zaid invested R300 000 in Khalid’s small business called “Quality Peanuts.” Zaid started working with Khalid and Zaid made a great effort to make the business a complete success. Zaid invented a new name and look for the product and called it “Super Peanuts” and did a lot of marketing which picked up the business to a great extent, after which the profits went on a major increase. Zaid told Khalid that he wants R3000 every month as a salary together with receiving his share of profits (if there did happen to be anything over and above R3000). Is this permissible?

2. The money which Zaid invested with Khalid was lent to Zaid by Ahmad. Now, when Ahmad saw how much money Zaid was making, Ahmad made a plan. Ahmad told Zaid that he wanted all his money back, so Zaid told Khalid that he wants his money back and that he was leaving the business. A deal was arranged where Khalid would pay Ahmad out slowly and Zaid left the business. Many months later, Zaid found out from different reliable sources that Ahmad told Khalid, “Don’t worry, it was just a plan. I am now taking Zaid’s place in this business. Keep the R300 000 and give me the profits every month.” For many months thereafter, Khalid collected the profits. To whom does the profit of all these months belong, Khalid or Zaid?

3. Zaid made it clear from the start and everyone agreed that “Super Peanuts” is his brand name and he owns it. Now, they are continuing to use his brand name and are denying that it is his brand name. Is this permissible?

Q: If Zaid and Amar are partners in a business and they also work in the same business, Is it permissible for them to take a drawing or a salary monthly/weekly for the work that they are doing and at the end of the financial year end share the profits of the business?

Q: A film crew making wants to use a property for a scene in their show. They pay a location fee. Is this income halaal? If not, can this income be donated? Sadaqah?

Q: A friend who has haraam income gave me clothing. Is there a way where I can make the wearing of the clothing permissible?

Q: What is the Shar'ee ruling regarding Medical Aid and Hospital plan in Islam?

Q: What is the Shariah ruling concerning Medical Aid? I am a civil servant and am subsidised for two thirds of the monthly instalment. It is not compulsory but if I do not utilise it, I lose the benefit.

Q: There is an online company which invests in shares and money exchange.  They ask us to deposit some amount in their account. They will purchase shares with it and will return to us 3.4% of our amount on a daily basis for 100 days. They will not return to us our principal amount. If I deposit $10, I will be getting $0.34 per day for 100 days. Is this business halaal or not?

Q: If a Director of a Limited Company acts beyond the contract with shareholders and acts recklessly, can shareholders demand that the Director assets (including cash) are seized by the shareholders? If they can be seized, how are they to be distributed?

Separate Scenario:

Before it is known that the Company Director has acted recklessly and broken contracts with its shareholders, what happens to any funds/assets that he has paid/transferred  as a gift/voluntarily to any of the shareholders from his personal wealth.  Do shareholders have the right to demand from the recipient of this gift a refund of the gift so it can be shared by shareholders?

When it is known that the Company Director has acted recklessly and broken contracts with its shareholders, what happens to any funds/assets that he has paid/transferred  as a gift/voluntarily to any of the shareholders from his personal wealth.  Do shareholders have the right to demand from the recipient of this gift a refund of the gift so it can be shared by shareholders?

Q: We have a number of incidents in which staff negligently damage equipment. In these cases, we can opt to dismiss the person for negligence or charge him to the value of the damage caused in which case he retains his employment. Which is appropriate? 

Q: With this letter I wish to enquire about a problem that I am currently experiencing, and require your kind assistance. I purchased a business plot approximately 25 years ago and placed my uncle’s name together with my name on the title deeds for tax purposes. My uncle did not invest any money on this plot as I had to pay cash for it with my own funding and build a business property on part of the land. After a few years, I sold the developed property for R200, 000 to an external party.

My uncle had no problem with the sale of the developed property as he was aware that he had no financial share in the property although his name appeared on the title deeds. From the sale of the property, I built a complex on the existing plot consisting of 5 shops and a flat on top. I had to take a loan of R300, 000 at the bank to finance the building complex.

As years carried on, I was experiencing financial difficulties with the repayment of the bank loan. My uncle paid the outstanding balance of the outstanding loan amounting to R240, 000 which includes lawyers fees, bank charges etc. He also spent a further amount to fix the property which he wrote down in a book for record purposes.

We agreed that the money spent on the 2nd newly developed property by himself should be repaid in full as I was the legal owner. I paid him and even took out a loan from the bank for R150, 000 as he was in financial difficulty and had to pay external parties. The balance of the loan was less than R200, 000.

At the moment there are four tenants in the building complex owned by myself, although his name still appears on the title deeds. He takes every month half of the rental income, although the money I owe him is less than 10% of the value of the building complex. Every month we are experiencing a continuous battle with the collection of the rental income for the past approximately 20 months. The 50% rental income collected by himself is not deducted from the money I owe him.

My uncle was in financial trouble with the Receiver of Revenue whereby his son decided to pay his outstanding debt. He made an agreement with his son that he could have all assets belonging to him. The son on a monthly basis collects 50% of the tenants rent. We are unhappy about this as it was not our agreement. I would like to know whether this money is halaal as they do not deduct it from my loan and it feels as though they are taking interest on the balance of the Money that I owe them. I have heard rumours that the son claims they own 50% of the property. It will be highly appreciated if you could provide me with a speedily resolution (Fatwa) on the above mentioned matter. I hope the above mentioned matter meets your favorable attention and urgency it deserves.