Home
Discover Islam
Quran Recitations
Lectures
Fatwa
Articles
Fiqh
E-Books
Women
Boys & Girls 
Enter Question
View By Subject
Fatwa Of The Week
Selected Fatwa
Fatwa CenterThe authority of a co-partner upon the money of a company
Question
I have a question regarding a family business. My father started a business about 15 years ago. I was one of the major contributors after my father in the business. My mother was the third. I am the oldest son and was living in the United States at the time. I put all my savings in the company. During the first few year of the company, my father was having some financial difficulties, and my youngest brother came to the United States to attend a University. I paid for most of my brother’s education until he graduated. I also was helping my 2nd brother, who was living in Jordan, to buy cretin things such as a car. My 2nd brother started to work with my father in the company. He had no collage education, and had some experience as an assistant mechanic and as a telephone cable installer. After few years I noticed that the distribution of profits and salaries in the company had a problem. My 2nd brother was splitting 40% of the profits of the company with my father (who had over 50 years of experience in this type of business) as a salary for his work. In addition all of his income was being put in the company and treated as equal shares in the company (same as the early money that had a great risk and did not make much return during the first few years). My father was paying for all of the living expenses of my 2nd brother and his family, therefore he was able to put in the company all of his income. After my 1st brother finished his education, he joined the company. Again he was equally sharing the 40% of the profits as salary, and my father started to pay for all the living expenses and his family. I told my father about the unfair distribution of profits and salaries several time throughout the years, but he refused to even hear what I had to say. After about 15 years the problem became enormous and my two brothers now own most of the company. Pleas give me you opinion on how to resolve this issue.
Answer
All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His slave and Messenger.
This issue has two probabilities:
1- If you had given the money before 15 years as a gift to your father, then you have no right to protest against the attitude of your father in the company. The owner [of a company of any other business] is entitled to do as he pleases in his company in what is permissible.
2- If you had given the money before 15 years to your father as a co-partner in the capital money of the company, in this case you have the same religious rights in the company as your co-partner (i.e. your father).
Among these rights is that it is not permissible for a co-partner, whether your father or anybody else, to favour anyone with the money of the company or to make another person a partner in the company, or to mix the money of the company with the money of others except with the permission of his co-partner. Therefore, you have the right to ask your father not to mix the money of the company with the money of other people and not to bring a new associate except with your permission and consent.
As regards the details of solving this problem, then this may be achieved by mutual understanding and agreement amongst the co-partners. If this is not possible, then you should take the case to an Islamic court.
Search Fatwa
Fatwa Subject
