A sleeping partner contributes capital but expressly stays out of management.
Under the Hanafi rule studied here, his profit share cannot exceed his investment ratio. So if he invested 40% and does no work, he cannot be allocated more than 40% of profit.
Term explanation: Sleeping partner: a capital partner who does not participate in management or work.
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partnership (مشاركة): Profit and Loss Rules
A sleeping partner contributes capital but expressly stays out of management.
Under the Hanafi rule studied here, his profit share cannot exceed his investment ratio. So if he invested 40% and does no work, he cannot be allocated more than 40% of profit.
Term explanation: Sleeping partner: a capital partner who does not participate in management or work.