AMAANAT INVESTMENT SHARES?

Posted on

AMAANAT INVESTMENT SHARES?

 

QUERY BY SOME INVESTORS 

A Concerned Investor queries:

 

I just have a few queries on this matter:

 

  1. Should the directors of Amaanat investment agree to pay back distressed shareholders, will this be at the market value of the shares based on the current valuation of the properties- this may only be at R500-600 per share; or

 

  1. Should the buy back be at the value that shareholders purchased those shares for….this was around R1400 around 2019/2020. Or

 

  1. The share had a linked loan account of R1000 plus equity of approx R400 (based on last financial statements in 2020). Is the R1000 then mandatory to be paid back to shareholders?

 

If the company decides to liquidate, the distressed shareholders may only receive R400-R500 per share, once all creditors are paid. This is according to some accountants and property experts. And Allah knows best! Kindly advise.

 

 

ANSWER

 

The investors in the Amaanat company are partners/shareholders in terms of the Shariah. However, since the partnership is baatil, the entity must be disbanded and terminated, and the investors be paid their respective shares of the assets of the company. It is haraam to continue operating this haraam venture. The baatil entity is in the category of Riba.

 

All three options mentioned by you have no validity in the Shariah. If the company has tangible assets and cash, then after paying the creditors, the balance, if any, has to be shared by the shareholders pro rata.

 

After paying the creditors, if there remain any assets, then the rights of the shareholders are in the assets. The options listed above are fiction in terms of the Shariah, hence have no validity.

 

If the assets of the company are insufficient to pay the creditors, the shareholders remain liable for the loss, and the debts will remain and extend into the Aakhirah where the creditors will demand payment. The crooks who are responsible for this miserable debacle will not escape liability and Athaab in the Aakhirah.

 

Here on earth they still have the opportunity to make suitable amends for their corruption. Therefore, those basking in the tens of millions should make good the loss and return to the baatil partnership whatever monies they had siphoned off in haraam ways to ameliorate the suffering of the small-timer investors who had no idea of the skullduggery taking place.

 

What the accounting experts and others say is all drivel and not valid in terms of the Shariah.

7 Shawwaal 1445 – 17 April 2024

-+=