Date : 22-01-2025

Question :

 I am a partner in a company with a certain percentage. I withdrew a sum of money from the company with the knowledge of the partners through the presented budgets. After years, the partners want to rearrange the shares in a way that corresponds to my financial withdrawals from the company to compensate for the difference in withdrawals. Do the partners have the right to change the shares, or is it recorded as a debt on me until I repay it?

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.


The established principle among jurists is that a partner is not entitled to withdraw anything from the company's funds except upon dissolution or the withdrawal of a portion of their share in the company. Al-Imam Al-Nawawi Al-Shafi'i, may Allah have mercy upon him, said: "If the owner withdraws some of it before the appearance of profit or loss, the capital returns to the remainder. If he withdraws after the profit, then what is withdrawn is shared in both profit and capital." [Minhaj Al-Talibin/pp.156].


The Hanbali scholars permit a partner to withdraw part of the company's profits before its final settlement with the consent of the other partners, provided that the amount withdrawn is returned. Al-Imam Ibn Qudamah (may Allah have mercy on him) said: "If the capital owner and the working partner (Mudarib) divide the profit, or if one of them takes something from it with the consent of the other, while the partnership is still ongoing, then if the working partner travels with it and incurs a loss, the working partner must return what they took from the profit, because it is evident that it was not profit, unless the loss is compensated." [Al-Mughni/Vol.5/P.45].


Accordingly, the ruling differs based on the nature of the agreement made between the partners. If the amount withdrawn from the company's profits was agreed upon as a loan, then it is considered a debt owed by the partner, and it will not be deducted from their share of the capital. However, if the agreement was that the withdrawal is part of the company's capital, then it will be deducted from the partner's share in the company. And Allah The Almighty Knows Best.