Abdur Rahman ibn Yusuf Mangera – Simplified Zakat Guidance Company Partnerships

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.