Can a partner form a sub-partnership (Mudarabah) or joint venture using partnership capital?

General Chapter

Al-Mughni

Book of Partnership

Book 18 · Issue 6 · Bab 1

Open in Qurani

Primary text

A partner cannot participate in a sub-partnership using partnership capital, nor can they entrust it for Mudarabah, because doing so imposes rights over the capital that result in profit belonging to another party, which is not permissible for the agent.