Asalarmwalcom
I have been provided an oppertunity to become a third onwer of a running business.
Unfortunately the business has outstanding loans and mortgages and will not endeavour to stop taking further loans or mortgages in the future, if needed.
If I am to become the third onwer, like the existing 2 owners, I will be receiving a 3rd share of what the business earns (net of expenses, business loans/mortgages, wages etc).
Please confirm whether I would be involving myself in haram and is there a practical approach which can be taken to avoid haram earnings whilst being a 3rd owner?
Assalaamu alaykum,
If they have already signalled that they will pursue non compliant borrowing, then this is a major issue. They need to reduce non compliant borrowing altogether as much as possible.
In terms of being a partner, if the business is halal, and its current interest bearing debt to asset ratio is less than 30%, you can consider joining. However, I would encourage them to move away from interest altogether.
Allah knows best
Asalarmwalcom Mufti
Firstly I want to thank you for taking time out to provide a response to my enquiry.
SInce my question, the business partners have confirmed that they are willing to re-structure the business so my involvment in future interest/loans is minimal or non at all. There are currently loans on the business.
There has been many dicussions on how they would structure the business so that I am not in benefit from interest.
I have been advised by other Brothers to completley stay away which was my initial intention due to the loans and future loans/mortgages. The business partners are not muslim therefore it would be unfair for me to simply request that they are not involved in future interest dealings.
Recently my partners have suggested that if any loans are needed rather than the current business obtaining them they will set up another company who will then purchase the relevant assets needed and lease these to the current company. This would mean that the current company will not pay any interest and would simply be leasing the equipment from the new comany of which the owners will be the partners and not me.
Please advise on the above and feel free to forward any other ideas.
If it is easier, please do give me a call on my mobile the number of which is 07463 878 573.
Jazarkhallah
Imtiaz