Musharakah

Musharakah (Partnership): The Arabic word musharakah is a derivative from the root word sharaka, which literally means sharing, and mixing shares of two or more parties to make them interchangeable. Technically, Hanafi scholars define musharakah as contract between partners on both capital and profit. The Malikis define it as permission to transact where each of the partners permits the other to transact with the partnership property while at the same time retaining his own right to transact with the same property (Al-Dardir, Al-Sharh Al-Kabir, 3/348). Shafi'i scholars define partnership as confirmation of the rights of two or more people over a common property (Al-Sharbini, Mughni Al- Muhtaj, 3/221). According to Hanbali scholars, it is the amalgamation of rights or the freedom to use (Ibn Qudamah, Al-Mughni, 5/3). See ISRA Islamic Financial System: Principles and Operations for further details.


Resolution No. 148 (6/16): Al-Kafalatu Al-tijariyyah (Commercial Guarantee)
Obtaining LCs Without Adequate Funds
Resolution No. 156 (5/17): The Completion Of Sukuk Al-Musharakah: The Components Of Its Assets
Can One Partner Lease his Half of a Jointly Owned Asset to Another Partner?
Can the Public Be Invited to Invest in an Unbuilt Real Estate Project If the Land and Designs Are Ready?
Issue Of Partial Completion in Istisna'a
Finance jointly with a usurious financer
Can a Trucking Company Charge Its Truckers a Commission for Acting as an Intermediary with the Government?
Is it Lawful for the Government to Provide a Guaranteed Minimum Profit on a Project?
What Is the Ruling on the Agreement for Purchase and Resale of a Plane Where KFH Purchases It Through a Partnership and Sells It Through Murabahah?
Guarantees As Separate Contracts in Musharakah, Mudarabah & Wakala
Syndicated Financing Between Islamic And Conventional Institutions
Can an Islamic Bank Partner with a Conventional Bank in a Lawful Project?
Can One Party Take Two Separate Roles in One Investment Operation?
What’s the Shariah Ruling Regarding Buying a Specific Commodity Based Upon a Customer’s Promise to Buy the Commodity by Deferred Payment?
The Shariah Advisory Council of Bank Negara Malaysia (the SAC) 146th Meeting
The Shariah Advisory Council of Bank Negara Malaysia (the SAC) 143rd Meeting
The Shariah Advisory Council of Bank Negara Malaysia (the SAC) 135th Meeting
Resolution No. 104: The permissibility of participating with University A to develop a cure for cancer
Resolution No. 114: The permissibility of the lessee participating in the profit or loss when the leased asset is sold
Resolution No. 117: A partnership agreement between Al Rajhi Corporation and Company A
Asking the Customer for a Share of His Profits as Payment for a Murabahah Sale
Can One Buy Shares of Jointly Owned Property and then Sell Them to One of the Partners by Murabahah?
Joint Purchase Followed by a Murabahah Resale to One of the Partners
دفع الزكاة عن أرباح أموال المساهمين أو الاحتياطيات
مسؤولية العميل عن التأمين في معاملات المشاركة
عمل وديعة مخصصة من دون خلطها بأموال المصرف
السحب المبكر من وعاء المضاربة
احتساب نتائج المشاركة
Legal Constraints on Buying Shares of Limited Liability Companies
Profit Sharing Fund
Shares: Guarantee
Third Party Guarantee – Without Consideration
Fee For Group Financing
A Purchase Undertaking and Earnest Money for Murabahah
A Purchase Undertaking and Earnest Money for Murabahah
A Difference in Profit Share of Jointly Owned Property
Allocating Profit For Expenses Borne By One Of The Partners in a Musharakah
An Islamic Bank Paying a Customer’s Credit Card Bill from His Deposited Funds
Business Expenses in Musharakah based on Percentage of Capital
Buying a Piece of Jointly Owned Real Estate and then Selling It Back to One of the Partners
Trading With A Related Entity
Can a Company Partner Be an Employee of the Same Company?
Can an Investor Exit a Portfolio by Selling His Share before Revenue Distribution?
An Heir Asks the Bank to Buy the Shares of Certain Heirs in a House and Then Sell It to the Rest of Them; Can the Bank Reserve the Right to Sell to Another Buyer?
One Party Buys a Truck; the Other Drives It for Monthly Expenses Plus a Share of the Profit after the Owner has Recovered the Price of the Truck
Can the Bank Buy a Car That Was Purchased by Its Appraiser?
Is KFH Considered a Mudarib or an Agent for Customers in a Currency Portfolio?
Is It Allowed to Sell a Share of Common Property That Has Been Leased Out?
Is It Allowed for a Partner in a Deferred Payment Sale to Sell Its Share to a New Partner?
If One Partner Injects Additional Capital after the Initial Capitalization, Should the Shares of Profit Be Adjusted?
Is It Allowed for a Partner to Sell Commodities to Other Partners?
Is It Allowed For a Partner to Sell Commodities to the Partnership?
Is It Allowed for a Partner to Stipulate a Fixed Salary for Managing the Company and Then Distribute the Profits According to Agreement?
Clarifications on Some Conditions of Partnership
Is It Allowed to Sell the Shares of a Company While It Is Still Being Established?
Is It Allowed to Buy the Shares of Companies Whose Activities Are Lawful but Have Usurious Loans?
Is It Allowed to Give Shares as Compensation for Labour?
What is the Ruling on Terminating an International Murabahah Deal before Its Term?
Revisiting the Ruling on Terminating an International Murabahah Deal before Its Term
Rulings of Investment in the Stock Exchange
What are the Rulings of Purchasing Existing Companies and Restructuring them so that they Conform to the Investment Requirements of the Shari’ah?
Is it Impermissible to Separate the Money of Depositors from the Money of Shareholders?
What are the Shari‘ah Conditions for a Musharkah?
Resolution No. 130 (14/4): Modern Companies: Holding Companies and Other Types of Companies, and Their Shari‘ah Rulings
Is it Allowed to an Islamic Financial institution to Buy Its Depositors’ Shares?
What Is the Shariah Ruling in Contributing in Projects that are Beneficial but Can Have Some Illegal Aspects like Hospitals?
What are the Shariah Rulings for Sukuk Musharakah?
What are the Condition in Financing the Building of an LPG Vessel?
Is it Allowed for a Fund to Stipulate that Sale of Shares Must be Done for the Partners Only?
Is it Allowed to Get Paid as Partner and Manager in a Musharakah?
The Rulings of the Musharakah Sukuk
Is it Allowed to Purchase Chalets under Construction that will be Sold to Customers?
Is it permissible for KFH to become involved in a portfolio for foreign currency exchange?
Is it Allowed to Participate in a Portfolio Where the Establisher Will Act as an Agent as well as a Principal on its Own Behalf?
Capital Contribution by Mudarib in Mudarabah Joint Venture
Financing Products Based on Musyarakah

Islamic Financial System ©

 

 


I-FIKR Sponsors