UERY BY SOME INVESTORS

Answer

Concerned Investor queries:

I just have a few queries on this matter:

Should the directors of Amaanat investment agree to pay back distressed shareholders, will this be at the market value of the shares based on the current valuation of the properties- this may only be at R500-600 per share; or

Should the buy back be at the value that shareholders purchased those shares for….this was around R1400 around 2019/2020. Or

The share had a linked loan account of R1000 plus equity of approx R400 (based on last financial statements in 2020). Is the R1000 then mandatory to be paid back to shareholders?

If the company decides to liquidate, the distressed shareholders may only receive R400-R500 per share, once all creditors are paid. This is according to some accountants and property experts. And Allah knows best! Kindly advise.

ANSWER

The investors in the Amaanat company are partners/shareholders in terms of the Shariah. However, since the partnership is baatil, the entity must be disbanded and terminated, and the investors be paid their respective shares of the assets of the company. It is haraam to continue operating this haraam venture. The baatil entity is in the cat