Objecting to interest-based dealings

Assalamu Alaikum,

One of the conditions listed for investing in the stock market by Mufti Taqi Usmani is to object to interest dealings. My question is practically speaking, who from the company should one email regarding this and what should one say? Is it still an obligation even if one has no hope of there being benefit from the email?

JazakAllah khair

Wasalam

May Allah bless you.

If the company is involved in interest-based transaction, then one must voice their disagreement in the annual general meeting.
If you cannot attend the meeting then you may use other alternative. @ibrahimkhan can elaborate on this point.
However one thing I would like to highlight is that one should never lose hope in their action. Even if that action may look minor and meaningless, what matters is to seek the pleasure of Allah.
Secondly, we are required to act only according to our limit. If your objection has no visible impact, then what matters is to do your bit. Allah says in the Quran: “Allah does not charge a soul except [with that within] its capacity…” (S2 V286)

And Allah knows best!

You can always write in to the company by finding their public address. My view is though that this objection is only meaningful if you’re an Islamic fund and hold a large chunk of the holding.

Arguably you could object by wider activism too - such as supporting halal stocks and shares and sharia-compliant indices etc.

Assalamu alaikum,

JazakAllah khair for both your inputs.

@ibrahimkhan I understand what you are saying, but if one did pursue this do you mean the physical mailing address? Or the investor relations email address or general contact us?

@Mufti_Billal so would it be okay if one did this within a year of first purchasing a share in the company or does it have to be done immediately?

JazakAllah khair

@Zaytoon31 - either is fine.

Salaam,

I had a question about deferring corporate tax payment due to current coronavirus crisis and resulting impact on company finances. HMRC charges some interest over and above the tax bill due if one requests an extension of the payment deadline and agrees an arrangement with them to pay in installments over 6 months (after the deadline date). What is the view on these interest payments?

Thanks,
Umer.

Wasalam

May Allah bless.
The payment of interest is not permissible.
Yes there may be scenarios where one has no options but to pay the interest. But this sort of assessment it usually made on a case by case basis.
My suggestion would be to speak to a local imam or scholar about your situation.

@Mufti_Faraz_Adam might offer another alternative to your issue.

And Allah knows best!

JZK for the response.

Asalaam alaykom wa rahmatallahi wa barakaato,

Are there any business bank accounts that don’t give/take interest? It seems that most, if not all, companies will have interest generated on their cash.

But as you said, it’s worth voicing your opinion and it may lead to change.

I think Al Rayan bank has a business banking account which is shariah compliant.

Regards

1 Like