Khums: Can the Management Pay Khums on Behalf of Shareholders in a Cooperative?

Practical Laws of Islam as per the teachings of Imam Khamenei

Khums: Can the Management Pay Khums on Behalf of Shareholders in a Cooperative?

English:

Question #937:

A cooperative of employees in the department of education was founded in 1986. The company’s capital was formed with the shares of a number of employees and each paid an amount of 100 tumans. Initially, the company’s capital was small. But presently, due to the increase in the number of members, the company’s (working) capital has reached 18 million tumans in addition to the vehicles owned by the cooperative. The company’s net profits are divided proportionally among the shareholders. Every shareholder can easily withdraw his share and settle his account with the cooperative. Since the khums of the capital and dividends has not been paid till now, as the president of the management committee, may I pay the khums pertaining to the company’s account? Does it require the approval of the shareholders?

Answer #937:

Paying khums on the partnership’s capital and its profits is the duty of each shareholder in regard to his share in the total assets of the company. Taking charge of its payment by the chief of the management committee depends on obtaining the permission and authorisation from the shareholders.

-Imam Khamenei, Practical Laws of Islam, Importance and Conditions of Khums