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MODES
OF PARTNERSHIP
....Truly
many are the partners (in business) who wrong
each other: Not so
do those who believe And work deeds of
righteousness.
Saae 24
The Holy Hadith:
I am the third partner to the two partners unless
either of them
betrays his friend. If either betrays his friend,
I quit from betwixt
them.
Related by Abu Daoud.
The
Characteristic Traits of Modes of Partnership
The partnership operation means two or more
parties draw a contract
to work together by the capital they contribute in
condition of
dividing the accruing profit between them.
The
most important traits of these operations are:
*
The participation in capital whether it is an
asset, labour or
liability.
*
The partnership in work, management and disposal
where the
right of ownership and disposal remains to each
partners.
*
The partnership in the results of the operations
whether profit
or loss.
*
The continuity in the partnership, usually to long
terms.
Divisions of the
Modes of Partnership
Partnership operations embrace all kinds of
contract companies
which the Islamic Figh divides into three kinds:
Labour
Company
it is a contract in accordance to which two or
more parties agree
on accepting to do a job (such as trade,
construction, etc.)
together and to divide the accruing profit among
themselves in
specific percentage.
Character
Company
It is a contract in
accordance to which two or more parties agree
on purchasing with their characters and reputation
goods and
commodities on credit for trading in condition of
distributing the
accruing profit, or loss among themselves in
ratios proportionate
to what each one of them bears of the debt guarantee
or security.
Asset Company
It is a contract in accordance to which two or
more parties agree
on participating in the contribution of capital
for investment
and the accruing profit shall be divided among
themselves in
specific percentages agreed upon and they bear
losses in ratio proportionate to their
(contributions) shares
in capital. But, profit may be distributed
separate from the
debt guarantee borne by each, whereas loss shall
be proportional
to debt guarantee.
In
Asset Companies
The two partners may be equal in capital and
power of disposal,
this sort of asset companies is called "Mufawada
Company"
The
two partners may neither be equal in capital nor
in power of
disposal. In other words, one of the partners has
more capital
than the other or one partner is responsible for
the company
and the other is not. This kind is called "Ainan
company".
It
is notable that the rein companies are the most
appropriate companies
for the business of the Islamic banks. The other
kinds of companies
rarely suite the nature of business in the Islamic
banks. That is because the rein company enables
the Islamic
bank to contribute in established or proposed
projects and
to authorize the other partners in all the
concerns of investment
and the bank contents with the role of general
supervision and
follow up and the right to intrude when necessary.
The
two modes of partnerships which are applied by the
Islamic banks.
They are:
*
Permanent Partnership
*
Decreasing Partnership
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