Question 1163) - What is the status of the transactions of the Mudarib if the capital-contributor has removed him?

A: If he did not know and he bought/sold, the transaction is valid. If he knew and he has goods of the partnership in his possession then he may still sell them despite being removed. He may not however buy anything with the obtained price. If at the time of his removal the partnership's wealth is Dirham and Dinar then he may not transact with them.

~ al-Quduri ~