Loss in Partnership

QUESTION:

I was in a business partnership and owned 50% of the company. The other partner managed the finances which I did not have access to. There was no real Hisaab (account) as the partner did not keep a record. The partnership suffered a great loss. Am I responsible for half the loss which was incurred?

ANSWER:

Firstly, the correct method of a partnership is that there should be transparency in every matter and every transaction should be recorded. Secondly, in the light of Shariah, whenever a loss takes place in a partnership, it will be borne by all the partners. Hence, both the partners in the queried scenario will have to bear the loss.

من أتلف مالاً مشتركا لأناس فمبلغ الضمان يكون مشتركا بين أصحاب ذلك المال .(المجلة ًص210)

ALLAH TA’ALA ALONE IN HIS INFINITE KNOWLEDGE KNOWS BEST!

ANSWERED BY:

Mufti Abdul Kader Fazlani

Date: 22 Shawwaal 1446 / 21 April 2025

CHECKED AND APPROVED BY:

Mufti Yacoob Vally Saheb