Question
A relative took me as a partner in a business which we jointly started. He invested all the capital. It was agreed to share the profit 80% - 20%. My share is 20%. After a few months, my relative took in another partner, and fixed his share at 50%. When it came to the time to share the profit, my relative says that my share is less than the agreed 20% in view of him having taken into the business the other partner whose share is 50%. What is the Shariah's Ruling in this matter?
Answer
The new partner 50%; your relative 30%; your share remains 20%. Your relative is in error for contending that your share is less than 20%. When he took in the new partner, there was no new agreement to realign your share. When he took in the new partner, his (your relative's) share diminished to 30%. If your relative is not satisfied, then he can cancel the partnership with you. However, until date of cancellation, the original 20% agreement in your favour remains valid and binding.
- Source
- themajlis.co.za
- Published in
- The Majlis Vol 20 No 06
- PDF page
- 2
Appears under Questions and Answers (approximate).