Darul Ifta Ibn Masood

Loss in Partnership

· 23 Shawwal 1446 AH1 min readEnglish

Question

I was in a business partnership and owned 50% of the company. The other partner managed the finances which I did not have access to. There was no real Hisaab (account) as the partner did not keep a record. The partnership suffered a great loss. Am I responsible for half the loss which was incurred?

Answer

Firstly, the correct method of a partnership is that there should be transparency in every matter and every transaction should be recorded. Secondly, in the light of Shariah, whenever a loss takes place in a partnership, it will be borne by all the partners. Hence, both the partners in the queried scenario will have to bear the loss.

References (Arabic / Urdu sources)

من أتلف مالاً مشتركا لأناس فمبلغ الضمان يكون مشتركا بين أصحاب ذلك المال .(المجلة ًص210)

Answered by
Mufti Abdul Kader Fazlani
Checked & approved by
Mufti Yacoob Vally Saheb
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Source: Darul Ifta Ibn Masood — https://fataawa.co.za/loss-in-partnership/
Fatawa SA: https://fatawa.co.za/fatwa/ibnmasood-37985

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