In the name of Allah, The Most Beneficient, The Most Merciful.
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Ibn Kathir Tafsir of the Glorious Qur'an |
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TO WHOM IT
MAY CONCERN
A Muslim can acquire the
shares of a joint stock company with the following
conditions:
- The main business of the
company must be Halaal (permissible) according to Shariáh.
So, a Muslim cannot invest in a company whose main business
is Haraam, like the traditional banks, insurance companies,
companies dealing in wines, etc.
- If the main business is
Halaal, but it is involved in borrowing money on Interest or
placing its funds in an Interest bearing account a Muslim
share-holder should raise his voice against this practice in
the annual general meeting of the company.
- When a Muslim share-holder
receives a dividend he must ascertain that proportion of the
profit of the company which has accrued on its
interest-bearing accounts. Then a similar proportion from
his own dividend must be given by him to a person or persons
entitled to receive Zakaat.
- If all the assets of a
company are in a liquid form and the company has not yet
acquired any fixed assets or any stock for trade, then the
sale and purchase of shares must be on their par value
only.
If anyone of these conditions is
contravened, the investment in a company is not permissible in
the Shari'ah.
NB. The above ruling has been
issued by Justice Mufti Muhammad Taqi Usmani of the Shariat
Appellate Bench - Supreme Court of Pakistan. He is also the
Deputy Chairman of the Islamic Fiqh Academy -
Jeddah.
Jamiatul Ulama
(KZN)
Islamic
Information
Source: Jamiatul Ulama (Kwazulu-Natal)
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