Partner Retiring and Seeking Fixed Profit
This question and answer were automatically translated using our trained AI and have not yet been reviewed by a qualified rabbi. Please treat this translation with caution.
go to original →
Question
A partner in a company wants to retire. Instead of his share of the profits — which was fifty percent, he requests a fixed profit. Let's say 20,000 shekels a month. Sometimes this will be more than his share, sometimes not. Can he remain a partner and keep the shares to protect himself in case the other partner does not pay? On the other hand, the other partner is supposed to distribute dividends according to the share distribution, so it is not convenient for him to remain like this. What should they do?
Answer
Hello
According to Halacha, any agreement they make between themselves will be binding, and in both sides you presented, there is no halachic issue.
Therefore, this is not a halachic question, and they should consult with business experts to understand what is economically correct to protect the rights of both parties.
Good luck.