Distribution of profit in case of Musharakah

The profite would be distributed in the folloing maner in case of Musharakah,
1- The proportion of profit to be distributed among the parners must be determined and agreed upon at the time of the contract, other wise the contract is not a valid contract under Shari'ah.
2- According to imam Malik and Imam Shafe'i, it is necessary that each partner’s share in the profit is exactly equal to the proportion of initial investment into the partnership.
3- According to Imam Ahmad, the ratio of profit distribution may vary, with out restriction, from the ratio of investment.
4- According to imam Ahmad, the ratio of profit distribution may vary, however, for silent partners (non-active partners, who only contribute capital) it can not higher than the ratio of investment.
Nadeem Khan Khattak

The writer is an international journalist, commentator and has vast experience in the international Politics & Finance. He is providing the most recent information, and reasonable discussions with proofs. If any readers want to contact him or ask a question, you can reach him by writing in the comment section.

Post a Comment (0)
Previous Post Next Post