The Foundations of Privileged Shares (More Benefit) of Joint-Stock Companies in Islamic Jurisprudence

Sometimes, in joint-Stock Companies, some shares with different motivations and according to the Articles of incorporation or decision of the extraordinary general meeting are considered as the privileged shares (Article 42 the legal bill amending certain parts of Commercial Code 1969). The possessors of such shares have rivileges which are not devoted to the possessors of ordinary shares. One of these privileges can be more annual benefit. On the other hand, according to Article 575 Civil Code of Iran, division of benefit should be in the ratio of the capital that each partner has invested unless in return for an action of one or some of them more benefit is taken into account. It seems that the Article 42, in which giving more benefit is not in return1 for an action, is in conflict with Article 575 Civil Code of Iran. Also in the opinion of some Islamic jurists allotting more benefit to a partner is just in return of an action done byhim, but, according to the belief which nowadays has a lot of adherents among the Islamic jurists, we can consider more benefit for some partners even without expecting them to do any action. The present essay, considering general rules of Islamic jurisprudence look to prove the second view and determine the absence of any conflict between the Article 42 the legal bill amending certain parts of Commercial Code (1969) and Islamic measures.