Question
A Muslim company went bankrupt. All the creditors lost their money while all the shareholders are wealthy and believe that they are not responsible for the debts of the company. What is the perspective of the Shariah in this matter?
Answer
According to the Shariah, the shareholders are fully liable for the debts of the company which in terms of the Shariah is a fiction. The shareholders are never absolved of the debt incurred in the name of the legal donkey, the company which has no validity and no existence in terms of the Shariah.
- Source
- themajlis.co.za
- Published in
- The Majlis Vol 26 No 08
- PDF page
- 4
Appears under MEDICAL TREATMENT (approximate).