• Home
  • About
    • About Us
    • Testimonials
    • The Team
  • Q&A
    • Worship
      • Purification
      • Salah
      • Zakat
      • Fasting
      • Hajj
      • Qurbani/Udhiyyah
      • Death & Burial
    • Commerce, Finance & Investment
      • Trade & Business
      • Jobs & Services
      • Investments
      • Schemes & Products
      • Islamic Finance & Banking
    • Nikah & Divorce
      • Nikah
      • Divorce
    • Social Issues
    • Medical Issues
    • Wills & Inheritance
    • Advice
  • Research & Essays
  • Articles
  • Contact Us
  • Nisab

chat
Darul Fiqh Darul Fiqh
Darul Fiqh Darul Fiqh
  • Home
  • About
    • About Us
    • Testimonials
    • The Team
  • Q&A
    • Worship
      • Purification
      • Salah
      • Zakat
      • Fasting
      • Hajj
      • Qurbani/Udhiyyah
      • Death & Burial
    • Commerce, Finance & Investment
      • Trade & Business
      • Jobs & Services
      • Investments
      • Schemes & Products
      • Islamic Finance & Banking
    • Nikah & Divorce
      • Nikah
      • Divorce
    • Social Issues
    • Medical Issues
    • Wills & Inheritance
    • Advice
  • Research & Essays
  • Articles
  • Contact Us
  • Nisab

Question:

I have shares in a company for which I am an employee.  We received shares as part of a saveshare scheme.  Is it permissible to be a shareholder and an employee of the same company?

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

The Answer:

It is permissible to own shares in the company you are employed in.  

The Fiqh (jurisprudence of the answer):

The risks and rewards of each contract is independent.  The role as a shareholder is independent and exogenous to the role as an employee.  Dividends received as a shareholder is dependent on the number of shares and performance of the company, whereas, the salary received is based on one’s own performance and services delivered in the company.  In addition, a shareholder can liquidate his shares and still continue to work as an employee.  In the same manner, an employee can resign from work and keep his shares in the company.  Therefore, the agreements are independent with the rewards and risks of each arrangement independent of the other.

The wisdom of the law:

Note: The law is not based on wisdoms.  The wisdoms are some benefits of the law.  It is possible that not all said wisdoms are found at a given time.  The absence of any or all wisdoms will not change the ruling or law.  The law is not deduced nor determined through wisdoms.  Wisdoms are enumerated to complement rationale minds.

The jurists prohibited a scenario where a shareholder or partner in a company is guaranteed a return or earning and as a result bears no risk on his capital investment.  Risk is necessary to gain reward in a monetary transaction or arrangement.  Reward without any risk is injustice and inequality which the Shariah has categorically prohibited.

And Allah Ta’ālā Alone Knows Best

Mufti Faraz Adam,
www.darulfiqh.com
 
DISCLAIMER:
The views and opinions expressed in this answer belong only to the author and do not in any way represent or reflect the views of any institutions to which he may be affiliated.
Arguments and ideas propounded in this answer are based on the juristic interpretations and reasoning of the author. Given that contemporary issues and interpretations of contemporary issues are subjective in nature, another Mufti may reach different conclusions to the one expressed by the author. Whilst every effort has been taken to ensure total accuracy and soundness from a Shari’ah perspective, the author is open to any correction or juristic guidance. On the event of any juristic shortcomings, the author will retract any or all of the conclusions expressed within this answer.
The Shari’ah ruling given herein is based specifically on the scenario in question.  The author bears no responsibility towards any party that acts or does not act on this answer and is exempted from any and all forms of loss or damage.  This answer may not be used as evidence in any court of law without prior written consent from the author.  Consideration is only given and is restricted to the specific links provided, the author does not endorse nor approve of any other content the website may contain.

Total
0
Shares
Share 0
Tweet 0
Previous Article
  • Commerce, Finance & Investments
  • Q&A
  • Schemes & products

Are Cashbacks From Quidco Permissible?

  • August 2, 2021
Read More
Next Article
  • Advanced knowledge
  • Q&A

Reality of Istikharah, Mashwarah and Decision Making in Islam

  • August 2, 2021
Read More
You May Also Find
Read More
  • Halal and Haram
  • Q&A

Consuming a sauce with crustacean-based ingredients

Read More
  • Q&A
  • Salah

How many Sadja Tilawa have to be performed if one listens to multiple Sajda verses from different students?

Read More
  • Q&A
  • Salah

How to fill a gap in the row in front of you

Read More
  • Halal and Haram
  • Q&A

Is the Jus-Roll Puff Pastry Halal?

Read More
  • Q&A
  • Wills & Inheritance

Does a Pension Investment Form Part of the Sharia Estate of the Deceased?

Read More
  • Q&A
  • Zakat

Benefiting from Corporation Tax Relief through Zakat Payments

Read More
  • Q&A
  • Schemes & products

Taking part in free bets on gambling platforms

Read More
  • Fasting
  • Q&A
  • Worship

How to deal with confusion in Iftar time

Subscribe to our Newsletter
Recent Posts
  • Consuming a sauce with crustacean-based ingredients
    • March 14, 2023
  • How many Sadja Tilawa have to be performed if one listens to multiple Sajda verses from different students?
    • March 12, 2023
  • How to fill a gap in the row in front of you
    • March 7, 2023
  • Is the Jus-Roll Puff Pastry Halal?
    • February 27, 2023
  • Does a Pension Investment Form Part of the Sharia Estate of the Deceased?
    • February 27, 2023

Darul Fiqh is a Fatwa website providing Islamic answers to everyday Fiqh issues and questions.

Powered by

Subscribe to Our Newsletter
Follow Us

Input your search keywords and press Enter.