Partnership: Ruling on Ownership of Property Bought with Company Funds but Registered Under a Partner’s Wife

Practical Laws of Islam as per the teachings of Imam Khamenei

Partnership: Ruling on Ownership of Property Bought with Company Funds but Registered Under a Partner’s Wife

English:

Question #1685:

One of the partners of a company bought some property with the company’s money and registered it in the name of his wife. Who has ownership of the property? And is the wife legally bound to register the property in the name of the partners, even though her husband will not let her do it?

Answer #1685:

If the husband [partner] bought the property for himself or his wife on credit, then paid for it with money from the company, the property is his and his wife’s. However, he becomes indebted to the rest of the partners insofar as their shares are concerned. If he exchanged it with the very company’s money, the [validity of the] transaction proportionately hinges on the consent of the other partners.

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