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The Economic System of Islam5 min readViewed 1 time

12.5 The Company of Reputation Faces - Wujooh


This company is an association of two bodies with the property of a third, namely a person gives his property to two persons or more as a Mudharaba, so the two mudharibs are partners in the profit through the property of another person. They may agree to divide the profit in thirds, to each mudharib a third and to the owner a third. They may also agree to divide it in fourths, where the property takes a fourth, one of the mudharibs takes a fourth and the other takes a half. Or they may agree on conditions other than these so that it is possible that there are preferential shares of the profit between the two workers. Their claim to preferential shares of profit is based on the reputation (Wajaha) of one or of both of them, whether in regard of their profession in work or of their skills in disposal and management, despite the fact that the right of disposal they have in the property is equal. This company is therefore different from the company of Mudharaba, although in reality it reverts to Mudharaba.

Among the companies of Wujooh is when two or more persons associate in what they buy using the trust of merchants in them, and the reputation that is based on this trust, without having property. They would agree that the property they bought is owned by them in halves or thirds or fourths or the like, and they sell that property. What they gain of profit is divided between them in halves, thirds or fourths or whatever else they agree, and not based on the previous agreement of the share of ownership. However, the loss is in proportion of their shares of the purchased goods, because these shares represent their property and not according to what they may agree about the loss, nor according to their share of the profit, whether the profit was divided between them according to the value of their purchases or otherwise.

Thus the company of the Wujooh with its two forms is allowed. This is because if the partners associated with the property of another person it is like the Mudharaba company, which is confirmed by the Sunnah and Ijma’a. If, however they associated with what they take from the property of another person, by buying goods through their reputation and the trust of the merchants in them, then it is like the company of Abdan, which is also confirmed by the Sunnah. The company of Wujooh is thus confirmed by the Sunnah and Ijma’a.

However, it is necessary to know what is meant by trust in this regard. When trust is mentioned in the matters of trading and company matters and the like, it is meant to be the trust in payment, which is the financial trust, not notability nor esteem. Therefore, a person may be a notable person yet He is not trusted to pay, so there is no financial trust in Him and thus there is no trust in Him in the subject of trading and partnership. He could be a minister, a rich man or a great merchant, but if He is not trusted to pay, there is no financial trust in Him nor is He trusted in anything. Therefore, He cannot buy any goods from the market without paying its price. Yet could be a poor person, but if the merchants trust Him to pay his debts, He can buy goods without paying their price immediately. In the company of Wujooh, the trust is thus focused on payment not on notability. What occurs in some companies is that a minister of the government is included as a member in the company and assigned a certain share of the profit, while He contributes no property nor participates with any effort. He is associated as a partner due to his standing in society so as to facilitate the dealings of the company. This is not considered as a wujooh company nor does the definition of a company in Islam apply to it. This type of partnership is not allowed and such a person is not a partner and He is not allowed to take anything from such a company.

What happens in some countries like Saudi Arabia and Kuwait is that the non-Saudi or the non-Kuwaiti person is not allowed to have a license for trading or working so He includes a Saudi in Saudi Arabia or a Kuwaiti in Kuwait as a partner. He assigns to Him a share of the profit, while the Saudi or Kuwaiti person does not contribute any property or his body to the company, rather He is considered a partner because the licence is issued in his name and He is given a share in the profit in return for this. This type of company is also not considered of the company of wujooh, nor is it allowed by Shar’a. Such a Saudi or Kuwaiti is not considered a partner and it is not Halal for Him to take anything from the company, because He does not fulfil the conditions which the Shar’a requires in the partner in order to become a legal partner. These conditions include associating in the property or by his body or by the trust in payment, so that He works with the goods He takes through this trust.

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Chapters (110)
  1. 11 Introduction to the Economic system
  2. 21.1 The Capitalist Economic System
  3. 31.2 The Economic System versus Economic Science
  4. 41.3 The Socialist Economic System
  5. 52 Economy
  6. 62.1 The Basis of the Economic System
  7. 72.2 The View of Islam towards the Economy
  8. 82.3 Economic Policy in Islam
  9. 92.4 The General Economic Principles
  10. 103 Types of Ownership
  11. 113.1 Private Ownership
  12. 123.2 Definition of Private Ownership
  13. 133.3 The Meaning of Ownership
  14. 143.4 The Means of Owning Property
  15. 154 The First Means of Ownership - Work
  16. 164.1 Cultivation of Barren Land
  17. 174.2 Extracting that which exists inside the earth
  18. 184.3 Hunting
  19. 194.5 Mudharaba
  20. 204.6 Share Cropping - Musaqat
  21. 214.7 Hiring-Employing an Employee
  22. 225 The Work Of The Employee Worker
  23. 235.1 Definition of the Work
  24. 245.2 The Type of Work
  25. 255.3 Duration of the Work
  26. 265.4 Wage for Work
  27. 275.5 The Effort Spent in the Work
  28. 285.6 The Ruling Regarding Hiring Over Prohibited Benefits
  29. 295.7 The Ruling of Hiring Non-Muslims
  30. 305.8 Hiring Someone to perform Worships and Public Services
  31. 315.9 Who is the Employee?
  32. 325.10 The Basis upon which the Assessment of the Wage is Established
  33. 335.11 Estimating the Employee's Wage
  34. 346 The Second Means Of Ownership
  35. 356.1 Inheritance
  36. 367 The Third Means of Ownership
  37. 377.1 The need for Property for Sustenance
  38. 388 The Fourth Means Of Ownership
  39. 398.1 That which the State gives of its Properties to the Citizens
  40. 409 The Fifth Means Of Ownership
  41. 419.1 The Property obtained by Individuals
  42. 4210 The Way To Dispose Of Property
  43. 4310.1 Right of Disposal
  44. 4410.2 Increasing Property
  45. 4510.3 The Rules of Lands
  46. 4610.4 Cultivation of Barren Land
  47. 4710.5 Disposal of Land
  48. 4810.6 Preventing the Leasing of Land
  49. 4911 Trading And Manufacturing
  50. 5011.1 Trade
  51. 5111.2 Manufacturing
  52. 5212 The Laws Of Partnership Companies
  53. 5312.1 The Company in Islam - Partnership
  54. 5412.2 The Company of Equal - Al-Inan
  55. 5512.3 The Companies of Bodies - Al-Abdan
  56. 5612.4 The Company of Body and Capital - Mudharaba
  57. 5712.5 The Company of Reputation Faces - Wujooh
  58. 5812.6 Company of Negotiation - Mufawadha
  59. 5912.7 Dissolving the Company
  60. 6013 Capitalist Companies
  61. 6113.1 Commercial Company of Joint Liability
  62. 6213.2 Joint-Stock Company - Share Companies
  63. 6313.3 Shares of the Share Stock Company
  64. 6413.4 Co-operative Societies
  65. 6513.5 Insurance Ta’meen
  66. 6614 The Prohibited Methods of Increasing Ownership
  67. 6714.1 Gambling
  68. 6814.2 InterestUsury (Riba)
  69. 6914.3 Criminal Fraud
  70. 7014.4 Deceit in Trade
  71. 7114.5 Monopoly
  72. 7214.6 Price-Fixing
  73. 7315 Right of Disposal to Spend in Gifts and Maintenance
  74. 7416 Public Property (AlMilkiyyah Al- Ammah)
  75. 7517 State Property
  76. 7618 Nationalised Property is neither Public nor State Property
  77. 7719 Seclusion (Hima) in the Public Interests
  78. 7820 Factories
  79. 7921 Bait ul Mal (The State Treasury)
  80. 8021.1 Revenues of Bait ul-Mal
  81. 8121.2 The Expenditures of Bait ul-Mal
  82. 8221.3 The State Budget
  83. 8321.4 Zakat
  84. 8421.5 The Head Tax (Jizya)
  85. 8521.6 The Land Tax (Kharaj)
  86. 8622 Distributing Wealth among the People
  87. 8722.1 Economic Equilibrium in Society
  88. 8822.2 The Prohibition of Hoarding Gold and Silver
  89. 8923 Riba and Currency Exchange (Sarf)
  90. 9023.1 Riba (Interes-tUsury)
  91. 9123.2 Currency Exchange (Sarf)
  92. 9223.3 Exchange Transactions
  93. 9324 Money-Currencies (An-Nuqood)
  94. 9424.1 The Gold Standard
  95. 9524.2 Benefits of the Gold Standard
  96. 9624.3 Problems facing the Gold Standard
  97. 9724.4 The Silver Standard
  98. 9824.5 Metallic Money
  99. 9924.6 Paper Money
  100. 10024.7 Issuing of Currency
  101. 10124.8 Exchange Rate of Currencies
  102. 10225 Foreign Trade
  103. 10325.1 The Reality of Foreign Trade
  104. 10425.2 Balance of Tarde
  105. 10525.3 Currency-Monetary Relations Between Countries
  106. 10625.4 Foreign Trade Policy
  107. 10725.5 Free Trade
  108. 10825.6 Protectionism
  109. 10925.7 National Economy
  110. 11025.8 Policy of Self-Sufficiency