On the spot business decisions made by one partner
| Fatwa #2406 | Category: Business & Trade | Country: Zambia | Date: 11th September 2026 |
| Fatwa #2406 | Date: 11th September 2026 |
| Category: Business & Trade | |
| Country: Zambia | |
Question
asw ww
hope you well
I had 2 questions,
1 – if there’s 5 directors in a certain company, now out of the 5 , one is managing director and does hisab as best as he can.. but sometimes due to some scenarios which is for the company itself he might have to pay a certain amount so that the company runs smoothly.. but he needs to make quick decisions and also fears that other directors might start questioning as to why he used these funds in that.. now what he does is there is salary which he takes apart from the shares he has but he then decides to cut a certain amount from his salary to recover the money he used for the company itself.. so is he supposed to do what his doing or not because decisions taken by him are not really known by other directors.
2 – if person a borrows money from person b to invest in a factory with person c, but factory gets sold and after sale of factory person c is told to give money to person a and both agree at the arrangement, but later on after sometime he gets to know from person a the one who gave money that person c has not paid him, so is person b who borrowed to give person c responsible to pay person a.? Though person a and c agreed that a will receive directly from c..
jazakallah khair
Answer
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
- Technically, joint directors need to make joint decisions. This is their right. However, if one of them is selected mutually to be the managing director, then he has indirectly been allowed to make spot decisions which he deems to be in the best interests of the company. As such, should such decisions actually be in the best interests of the company, then the director is permitted to treat them as normal expenses without having to deduct his own wages at the end of the month. However, if such decisions and expenses are not in the best interests of the operations of the company, he will be liable for that.
- Your query is not clear. You have conflated between A and B as to who is the borrower and who is the lender. Kindly clarify. You may also clarify what arrangement it was that made C liable for paying back the original lender.
And Allah Ta’āla Knows Best
Mufti Bilal Pandor
Concurred by
Mufti Muhammad Patel
Darul Iftaa Mahmudiyyah
Lusaka, Zambia