Due diligence work on employee securities

Everyday Islamic Finance Business and Career Questions
#1

Salaam Mufti,

Is it halal to conduct a due diligence on companies which mainly conduct haram activities? Particularly concerned with the following:

  1. Stock Exchange Groups such as LSE, NYSE etc
  2. Commercial banks such Barclays, HSBC etc
  3. Insurance companies such as Admiral

Due diligence will be related to employee securities / employee share options

Jazakallahu khair

#2

Wa alaykum salaam,

What exactly would you do?

#3

Work is regarding tax due diligence

This involves ensuring that the conditions have been met for the share options to benefit from tax relief. If we find out that conditions are not met for share options then this will give rise to a previously unknown tax liability to the company.

An example is SAYE (Save as you earn) scheme.
Example of a condition is that shares given to employees must not be of a company that is under the control of another company.

#4

Please let me know if you require further information.

#5

Wa alaykum salaam,

You can do this role.

Allah knows best