The normal principle of musharakah is that every partner has a right to take part in its management and to work for it. However, the partners may agree upon a condition that the management shall be carried out by one of them, and no other partner shall work for the musharakah. But in this case the sleeping partner shall be entitled to the profit only to the extent of his investment, and the ratio of profit allocated to him should not exceed the ratio of his investment, as discussed earlier.
However, if all the partners agree to work for the joint venture, each one of them shall be treated as the agent of the other in all the matters of the business and any work done by one of them in the normal course of business shall be deemed to be authorized by all the partners.
- Available with the kind permission of Skeikh Muhammad Taqi Usmani
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Shirkat-ul-Milk and Shirkat-ul-Aqd
Musharakah - Distribution of Profit
Ratio of Profit
Sharing of Loss
Nature of Capital
Termination of Musharakah
Mudarabah – Introduction
Mudarabah – Distribution of Profit
Termination of Mudarabah
Combination of Musharakah and Mudarabah
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