Partnership | Islamic Laws by The Leader Ayatullah Ali Khamenei
Q1678. I contributed to the capital of a company and appointed the owner of the company as my agent in so far as the investment is concerned provided that he pays me a fixed monthly sum of money. A year later, I settled for a plot of land he gave me in return for the money I put into the company and the profits thereof. Is this shari?
A: As you invested in the company and authorized him to deal with it, there is no objection to receiving Halal proceeds.
Q1679. A number of people bought an object collectively. They agreed between themselves to draw a lot to determine the owner. What is the ruling?
A: If the intention behind the draw is granting each individuals share in the object to the person who wins it, there is no harm in it. Yet, if the intention is transferring the joint ownership to the person who wins the lottery per se or their intention is mainly wining and losing, it is not shari.
Q1680. Two people jointly bought a plot of land. They have been cultivating the land for some twenty years. One of the partners sold his share to a third party. Has he the right to do so? If he refuses to sell his share to his partner, can the latter do anything about it?
A: The partner has no right to force the other partner to sell him his share. Nor has he the right to object to the partners selling his own share to another party. However, he can resort to pre-emption, provided that the prerequisites are available and the transaction is concluded.
Q1681. What is the ruling in the matter of dealing in shares in the stock exchange? It is to be noted, however, that the share itself is subject to the deal, rather than the capital of the company and that the price of the shares might go up as well as down. And what is the view if the activities of some companies are either riba-based or doubtful?
A: If the value of the shares of a company or a bank is based on the shares themselves and their credit was issued by an authorized person, there is no objection to buying and selling them.
If the value of the shares is regarded as the value of the entire plant, mill, company, or bank as the capital thereof, in that each share constitutes part of the capital, there is no objection to buying and selling such shares provided that the total number of shares is known, besides other information with a view to avoiding any risk that could be thus perceived in the common view.
Q1682. As a result of a disagreement between the three of us, we decided to sell the poultry business we own as partners at auction. One of us won the bidding. Ever since, he has been procrastinating with regard to paying us our money. Can this transaction still be deemed shari?
A: Getting the auction underway and tendering a higher price by one of the partners, or any other party for that matter, is not sufficient to complete the sale and own the business. Therefore, if the sale of shares has not been concluded properly and in a shari way, the partnership should remain intact. However, if the sale has gone through in a proper manner, the delay in paying the price for the business by the buyer should not render the sale transaction invalid.
Q1683. A group of people set up a company by way of partnership. The company was officially registered with the authorities. However, I relinquished my share in favor of another person who bought it from me. He paid me the price by five checks which bounced. When I approached the buyer, he took the checks from me and restored my share in the company, but he remained officially the stockholder. It transpired that he sold the share to another party. Has he the right to do so? And do I have the right to demand the restoration of my stake in the company?
A: If the buyer, who revoked this sale after he had got his checks back, sold the share to a third party before the cancellation, this sale is valid. If he had sold the share after the cancellation, this sale cannot go through unless you sanction it.
Q1684. Two brothers inherited a house from their father. They couldnt reach a settlement as how to divide the inheritance. The case was submitted to the court to decide it. The court consulted an expert, who advised that the property couldnt be divided and that it would be mustaHabb for either of them to sell his share to the other or for the house as a whole to be sold to a third party. Accordingly, the property was sold at auction and the proceeds given to the two brothers. Is this sale shari and can the two brothers receive their respective share of the proceeds?
A: There is no problem in that.
Q1685. One of the partners of a company bought some property with the companys money and registered it in the name of his wife. Who has ownership of the property? And is the wife legally bound to register the property in the name of the partners, even though her husband will not let her do it?
A: If the husband [partner] bought the property for himself or his wife on credit, then paid for it with money from the company, the property is his and his wifes. However, he becomes indebted to the rest of the partners insofar as their shares are concerned. If he exchanged it with the very companys money, the [validity of the] transaction proportionately hinges on the consent of the other partners.