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Search Fatawaa

Subject : Partner Taking Wages for doing Company Work

Fatwa Number : 330

Date : 24-08-2009

Classified : Partnership in Business

Fatwa Type : Search Fatawaa

Question :

Is it permissible that I take a salary from the company in which I am a partner? In fact, I am the manager.

The Answer :

All perfect praise be to Allah the Lord of the Worlds. May His peace and blessings be upon Prophet Mohammad and upon all his family and companions.

Most jurists are of the view that it isn`t permissible for a partner to take from company funds except the profits proportionate to their share in the capital. However, some Shafie jurists, and this is the Madhab of Hanafie school of thought, permitted allocating a greater amount of the profits to the working partner compared to the rest of the partners in return for his efforts in running the company.

Al-Juaini (May Allah have mercy on him) stated, "If the partners had equal shares in the capital, but differed in the amount of work, then if an increase in the profits was stipulated for the partner who did more work, there are two views in this regard. One of them is that this is permissible because that partner did more work." {Nehayat al-Matlab, V.7:25}. For more details, check the book {Rad al-Mohtaar, V.3:352}.

As for one of the partners receiving a fixed salary in return for doing work for the company, this wasn`t mentioned by any of the scholars save the Hanbali scholar Al-Bahooti who said, "If it is customary that someone delivers a certain task for the company, then it is permissible to hire anyone even a partner to do it." {Shareh Montaha al-Eradaat, V.2:324}.

We see no harm in following the above opinions of the jurists to facilitate for the people especially in matters that rely heavily on Ijtihad (Independent reasoning). However, the wages must be determined in agreement with the rest of the partners or their representatives since they (wages) are deducted from the profits of their shares. And Allah the Almighty knows best.



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