Question
Can the active partner in a partnership business receive a salary as well as profit share? What if a salary arrangement has already been made?
Answer
Shareholders in a partnership business (Shirkat) are entitled to only profit, not to salary. The partners have to proportionately share in both the profit and the loss. The salary arrangement should be cancelled, and the percentage profit share may be increased, e.g. the one whose share is 5% could be increased by any percentage, and so too with the others.
- Source
- themajlis.co.za
- Published in
- The Majlis Vol 26 No 06
- PDF page
- 5
Appears under CORRECTION (approximate).