Darul Iftaa Mahmudiyyah

A partnership is being dissolved. What would be the procedure? How would one value the business? Can one of the partners purchase the business?

· 27 Jumada I 1421 AH1 min readFatwa 352English

Question

The question text was not published separately; the title stands in for it.

A partnership is being dissolved. What would be the procedure? How would one value the business? Can one of the partners purchase the business?

Answer

When a business is dissolved, firstly, the debts should be paid. Thereafter, the business capital and profits should be calculated and each partner is entitled to his share (capital and profits) in the business.

Should one partner wish to purchase his partners share, he may do so and negotiate the selling price of his share with his partner.

and Allah Ta'ala Knows Best

Mufti Ebrahim Desai

Answered by
Mufti Ebrahim Desai
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Source: Darul Iftaa Mahmudiyyah — https://askimam.org/public/question_detail/352
Fatawa SA: https://fatawa.co.za/fatwa/askimam-352

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