Abdur Rahman ibn Yusuf Mangera – Simplified Zakat Guidance Company Partnerships
![Abdur Rahman ibn Yusuf Mangera](https://artwork.muslimcentral.com/abdur-rahman-ibn-yusuf-mangera-150x150.jpg)
AI: Summary ©
AI: Transcript ©
Bismillah R Rahman r Rahim, the issue about zakat I want to cover
in this session is the curtain partnerships. Essentially, the
only difference of a partnership is just like a partnership would
be a partnership in a business, I'm assuming. So everything
relevant to the cotton businesses is going to relate to the garden
partnership, the only difference is going to be that whatever the
proportionate share of each partner is, they will be liable
for that amount of assets within the company, whatever is the
cuttable of that proportion, they will be liable for that. So so the
way some companies work is that they may be limited companies, and
which in the legal terms be considered a independent entity,
right. And even though it's got to, to owners, and so on to
directors and so on and so forth. However, in essence, if that is to
be dissolved, then obviously that money will go to those
shareholders and to those partners anyway. So the liability of the
assets in our for the show is are basically do belong to the
shareholders as mean, they are liable for this account in that.
So what happens is just say that somebody's paying their their
personal zakat in Ramadan. So they're going to incorporate in
there any dividend that they may have received. So if Ramadan is
in, in May, and they got a dividend in April, right. So
basically, that means they've already got that before the date
of death occurred, that means they're going to include that in
there, if they've still got any money left from that, however, any
monies which are left inside and any other equitable assets that
are inside the business, who takes care of that. So really, what
happens then is, the way you should do this is that you should
basically decide whose is what you will know that from the
shareholding and then that would be divided and the value of that
will be ascertained. Whatever is accountable, and what it is not
the garden. So whatever is accountable, even though you're
not pulling it out as a dividend, right, you've got stock inventory,
or other things which are accountable or other cash that
you've just kept in there. Right? That is going to be divided among
the shareholders. And they will then pay that out on the on the
record date as well. So I got a question recently that there's a
partnership in a company to people or partners 5050, let's just say,
and their company accounts are made six months after Ramadan. So
do they have to wait until six months later and then pay zakat on
that day on behalf of the company separately. So as I mentioned, the
company is not due to pay any Zagato on its own. There's no
liability on a company because we don't see companies as independent
entities, they belong to the owners. So really, what you should
be doing is, you should get them to make a calculation of the
multiple assets around the time that you are paying zakat. So on
the day, that is yours, the current date that you fixed,
right, and whatever's in there at that time is what you will pay
zakat on. Right. That is what's important. You don't wait until
the company has to do its own accounts. Of course, when the
company does its accounts, then sometimes there's certain things
which become more clear in terms of what's owed and what you know
what the holding and so on, then you can actually go back then and
just check if you've paid sufficiently, right. So you can
use that to correct any wrong. And if you've paid more from before,
well, that's fine, it becomes sadaqa, right? And if you've paid
less than you'd have to pay that much. But otherwise, you generally
don't wait until the company's accounts become due. And you don't
have to pay on behalf of the company. Yes, if somebody wants if
there's two partners, and on the day that there's a god's do, they
can actually pay whatever the assets are in the business that as
a collateral, they can just pay on those assets without distributing
them among them, that's completely fine. Because the maximum that
that will that will cause is that maybe somebody will pay more than
they're supposed to, and that's fine. In that case, you hardly
will ever pay less than what's due. So you can do it like that as
well on the day that the individuals zakat are due. So
hopefully that's clear inshallah.