DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - Corporations and Limited Liability not Shariah Compliant

**markphata** · 08-06-2012, 05:16 AM

I sincerely hope it won't come to that. Investing in blue chip companies would still be Haraam. As he will contribute to the house I am living in in terms of food, bills etc this distresses me greatly that the money is not halaal. The problem is he got his degree in business with the sole intention of investing. Nevertheless I will be adamant on this issue as it affects the entire family. I don't want haraam food in our stomach. It's difficult enough to know our house is mortaged let alone deal with our food, gas, electrics also being paid by haraam income. If need be I will involve my parents as they have the ability to enforce it. I'd rather it not get to that stage however. Forcing rarely works out well.

Request for Du'aas once again.

Assalamu alaikum,

I have read arguments from both sides and personally I am not convinced at all by the arguments made by Mufti Ebrahim Deai saheb. The arguments put forward by Mufti Taqi and his father Mufti Shafi', I find are much more reasonable, both of who permit investing in shares of limited liability corporations.

Needless to say there are two camps on this issue, and those who prohibit investing in shares is clearly the minority. I do not think there is any point in actually discussing the merits of the arguments of the two parties as I am sure the ulema on both camps have considered the arguments. The intention of this post is merely to bring to the attention of the members of the forum that as far as I know majority of the scholars and the majority of the Deobandi scholars permit investing in the shares of limited liability corporations.

It is however important to note that one must abide by the conditions of investing in shares which are highlighted in the AAOIFI standards. Apart from obvious impermissibilities such as not investing in a haram company, etc., one has to ensure that the company's debt to asset ratio is below 30% and haram income in the company is below 5%.

08-06-2012, 05:16 AM	#31
markphata Join Date Oct 2005 Posts 417 Senior Member	I sincerely hope it won't come to that. Investing in blue chip companies would still be Haraam. As he will contribute to the house I am living in in terms of food, bills etc this distresses me greatly that the money is not halaal. The problem is he got his degree in business with the sole intention of investing. Nevertheless I will be adamant on this issue as it affects the entire family. I don't want haraam food in our stomach. It's difficult enough to know our house is mortaged let alone deal with our food, gas, electrics also being paid by haraam income. If need be I will involve my parents as they have the ability to enforce it. I'd rather it not get to that stage however. Forcing rarely works out well. Request for Du'aas once again. Assalamu alaikum, I have read arguments from both sides and personally I am not convinced at all by the arguments made by Mufti Ebrahim Deai saheb. The arguments put forward by Mufti Taqi and his father Mufti Shafi', I find are much more reasonable, both of who permit investing in shares of limited liability corporations. Needless to say there are two camps on this issue, and those who prohibit investing in shares is clearly the minority. I do not think there is any point in actually discussing the merits of the arguments of the two parties as I am sure the ulema on both camps have considered the arguments. The intention of this post is merely to bring to the attention of the members of the forum that as far as I know majority of the scholars and the majority of the Deobandi scholars permit investing in the shares of limited liability corporations. It is however important to note that one must abide by the conditions of investing in shares which are highlighted in the AAOIFI standards. Apart from obvious impermissibilities such as not investing in a haram company, etc., one has to ensure that the company's debt to asset ratio is below 30% and haram income in the company is below 5%.
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