DEFINATION OF PARTNERSHIP
Linguistic MeaningThe word for partnership is sharika and some jurists use the word shirkah.Ibn al-Humam in Fath al-Qadir describes sharika as meaning the mixing of the shares so that one of them cannot be distinguished from another.
Shaikh Taqiuddin an-Nabhani states in Nidaam ul Iqtisaad fil Islam (Economic System in Islam) that Ash-Sharika linguistically means mixing two or more shares together such that neither can be distinguished from the other.
Shariah MeaningDifferences in the types of sharikah between the Mujtihideen has meant that there has been difficulty in producing a general shariah definition.The Maliki scholar Al-Khayyatquotes a definition from al-Dardir in his al-Sharikat that a partnership is “a contract between two or more owners of wealth for joint tradeor it is a contract for shared labour and shared profits.”Ibn Qudamah the Hanbali scholar in al-Mughni defined itas “participation of two or more persons in transactions.
However perhaps the most comprehensive shariah definition is provided by Sheikh Taqiuddin an-Nabhani in Nidaam ul Iqtisaad where the company in Shar'a is defined as a contract between two or more persons, in which they agree to perform financial work with the intention of making profit.
BASIC OF PARTNERSHIP IN ISLAM
Daleel (Evidence)
Partnership is allowed in Islambecause when Muhammad was sent as a Messenger people weredealing with companies and he (salAllahu alaihi wasallam) didnot forbid this.
Al Bukhari narrated that Abu Al-Minhal said: "I and my partner bought something in cash and credit. Al-Bara ibn 'Azib came to us so we asked him about this. He said: 'My partner, Zaid ibn Al-Arqam, and I did the same and we asked the Prophet (salAllahu alaihi wasallam) about this.' He (salAllahu alaihi wasallam) said: 'That which is in cash you take, and that which is in credit you return it back."'
However, in another Hadith Ad-Daraqutni narrated from Abu Hurairah that the Prophet (salAllahu alaihi wasallam) said: "Allah the Supreme said 'I am the third of the two partners as long as one of them does not betray his companion. If he betrayed, I would withdraw from them".
In affirming the above hadith Allah (swt) had clearly stipulated in the Qur'an where he said :
" There is no Najwa (secret counsel ) of three, but He is their forth ( with his knowledge, while He Himself is over the throne, over the seventh heaven) nor of five but He is their sixth (with his knowledge), not of less than that or more but He is within with His knowledge) wheresoever they may be;.........". (Q58:7)
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