Question
I have invested a substantial amount of money in the company called “Itminaan Investments”. In the beginning I had received some ‘dividends’ which were supposed to be profit. But, all dividend payments have stopped, and I have been informed by the Maulana who operates this company that my investment is lost. His company has lost, hence all investors are said to have lost their investments. The lost amount runs into tens of millions of rand. Herewith is the Mudhaarabah document which states the terms for the investment. Is this Mudhaarabah venture compliant with the Shariah. What now happens to the investment amounts of the numerous investors who are termed “Rabbul Maal”? It appears that this company has no assets whatsoever. I do not know in what kind of business operations was our money invested.
Answer
ccording to the Shariah what recourse do the investors have? The company simply shrugs off the huge losses saying that according to the Shariah he (the company’s operating manager) is not liable for the loss. Is this correct? Does the company have no liability? Investors who have lost their huge investments are shocked.
Please comment on this company and its Mudhaarabah enterprise.
THE MUDHAARABAH CONTRACT
(Redaction not done by The Majlis)
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ANSWER & COMMENT
(1) At face value, the brief Mudhaarabah contract (above) is valid and complies with the Shariah. Since no other factors have been mentioned, we cannot comment on the machinations and operation of the company.
(2) According to the Shariah, if the Mudhaarabah enterprise fails or suffers such a loss which debars it from continuing its trading operation, then whatever profits the partners (both the Rabbul Maal and the Mudhaarib) had acquired earlier, have to be returned to the investment amount.
If after return of the profits, there still remains a shortfall, then the Rabbul Maal will bear the entire loss, not the Mudhaarib. The Mudhaarib is essentially a worker
- Source
- themajlis.co.za
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- themajlis.co.za Q&A
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