The nature of capital in Musharakah

There are the following opinions on this subject,
1-     According to imam Malik and some Hanbali jurists, the nature of capital is not a restriction in a Musharikah arrangement. There fore, in-kind (not-cash) contribution by partners are allowed. The share in partnership will be determined based on the market value of the commodity contributed.
2-     According to Imam Abu Hanifah and Imam Ahmad, no in-kind contributions are allowed in a Musharakah arrangement. This is because they believe it poses problems if the partnership needs to be liquidated or redistributed.
3-     Imam Shafe,I makes a distinction between replaceable commodities and irreplaceable commodities (Like cattle). The view is rather complex and not important for our purposes.
For the purposes of modern business, the view of Imam Malik has been widely accepted.
Nadeem Khan Khattak

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