Is mudarabah permissible when the capital contributed by both parties is mixed (musha')?
General Chapter
Al-Mughni
Book of Partnership
Primary text
Mudarabah is permissible when the capital is mixed, provided the mixture occurs with the working partner (al-amil). The prohibition against mixed capital only applies when it is mixed with a partner other than the worker, as such mixture prevents the non-working partner from controlling the disposition of the assets. When mixed with the worker, it does not prevent him from acting, thus the validity of the mudaraba is not affected.