Q. "How
is zakah calculated and paid on the unquoted shares which cannot be sold
through stock Exchange? "
(Nafesa
Raja Hong Chik, Malaysia)
A. Zakah is obligatory on the market value of the shares of every
joint stock company. Although the market value of the unquoted shares
cannot be determined through the stock Exchange, yet there are two ways
to determine their value.
1. Some unquoted shares are sold and bought through "over
the counter" transactions i.e. by mutual agreement of the buyer and
seller and without the meditation of a stock Exchange. These "over
the counter" transactions may determine the market value of the unquoted
shares.
2. If the market value cannot be ascertained in this way for some
reason, then the value of the unquoted shares should be calculated on
the basis of the balance sheet of the company.
It has already been explained in Albalagh (June 1990 p.20) that a share
holder can deduct from the Zakatable value a proportion equivalent to
that of the fixed assets of the company. The same principle is applicable
to the unquoted shares also.
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