The manager of a business should brief his co-partners about his work

1-4-2009 | IslamWeb

Question:

Assalamu Alaikum! I have started a business with another 4 muslim brothers, and one of this partner is running the business, and we have given complete power to him. Now, whenever I ask about the monthly activities of the business, he is not providing also the major activities of the business like recruitment and terminate and all. My question is as a muslum would he [running partner] is reponsible for not providing proper infomation about the business at least once in a month? pls advise. Jazakallah Khair!

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Answer:

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His slave and Messenger.

 

If the partners authorize one of them to run the company and they gave him full power then he should run the company according to the trade customs and within the limits of the Sharee’ah, and any contravention to this, the authorized person is considered as a guarantor.

By this authorization, he becomes a trustee and it is sufficient for him to give a brief report about his work, as stated by the scholars in case of in the co-partner, or the Mudhaarib (i.e. the person who manages the Mudhaarabah, or the Wasiyy (i.e. the executor of the will) or the Mutawalli (i.e. the caretaker of the Waqf, as all of them are trustees.

Therefore, the authorized partner is not obliged to inform his partners about his work in the company for each step he takes, unless this is conditioned on him or that this is known in the customs of people because what is known to be a custom is like what is conditioned.

This is as far as his obligations are concerned otherwise, he should inform his partners about the process of work in the company.

For more benefit, please refer to Fatwa 94668.

Allaah Knows best.