Partnership: Ruling on Using Company Profits for Charity Without Shareholders’ Consent

Practical Laws of Islam as per the teachings of Imam Khamenei

Partnership: Ruling on Using Company Profits for Charity Without Shareholders’ Consent

English:

Question #1694:

Is it permissible for the management of a company to spend its profits in charity without seeking the permission of the shareholders?

Answer #1694:

Making a decision about dividends rests with the shareholder himself. Thus, if someone else spends the dividends without either power of attorney or permission from the shareholder, he should be held responsible to compensate the shareholder, even though the income is spent in charitable causes.

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