Corporations and Partnerships with Respect to Ribbit: Difference between revisions
From Halachipedia
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====Disputes Between Investor and Agent==== | ====Disputes Between Investor and Agent==== | ||
# The agent claimed that there were profits and gave distributions or dividends to the investor based on those claimed profits. Then after the duration of the investment the agent claims that it was fraud and in fact he did not profit and should only return the capital after deducting the distributions or dividends he made. The halacha is that he is not believed and the investor is entitled to his entire capital since it was given as a profit.<ref>Shulchan Aruch C.M. 81:30, Y.D. 177:20</ref> | # The agent claimed that there were profits and gave distributions or dividends to the investor based on those claimed profits. Then after the duration of the investment the agent claims that it was fraud and in fact he did not profit and should only return the capital after deducting the distributions or dividends he made. The halacha is that he is not believed and the investor is entitled to his entire capital since it was given as a profit.<ref>Shulchan Aruch C.M. 81:30, Y.D. 177:20</ref> | ||
====Rights to | ====Rights of the Investor to His Profits==== | ||
# The agent who has the portion of the profits from the investment on the behalf of the investor may not spend 10% as maaser on a tzedaka of his choice. Doing so isn't his right. Rather he should give the portion of the profits to the investor and he should give the appropriate tzedaka he wishes.<Ref>Rama 177:22</ref> | # The agent who has the portion of the profits from the investment on the behalf of the investor may not spend 10% as [[maaser]] on a tzedaka of his choice. Doing so isn't his right. Rather he should give the portion of the profits to the investor and he should give the appropriate [[tzedaka]] he wishes.<Ref>Rama 177:22</ref> | ||
# The investor is entitled to his profits before any creditor of the agent can collect them. This is provided that there is a clear proof with witnesses as to the whereabouts of the investment.<ref>Shulchan Aruch Y.D. 177:31</ref> | |||
# If the agent wrongly gifted the profits of the investment to other people the agent is obligated to pay the investor and if he can't then the receipts of the gifts are obligated to pay the money back to the investor since it is his investment and his profits. (This type of scenario is possible in a Ponzi scheme.)<ref>Shulchan Aruch Y.D. 177:32, Shach 177:60, Chelkat Binyamin 177:256. See there for more details.</ref> | |||
===Alternate Versions of Iska=== | ===Alternate Versions of Iska=== | ||
