---
title: "What is Shareholders' fund (takaful)? | IslamicOpenFinance™"
description: "The takaful operator's own fund: its capital, fees and expenses, kept apart from the participants' funds."
url: https://islamicopenfinance.com/glossary/shareholders-fund/
lang: en-GB
source: "IslamicOpenFinance"
---

[Glossary](https://islamicopenfinance.com/glossary/) / [Takaful](https://islamicopenfinance.com/glossary/#takaful)

Takaful

# Shareholders' fund (takaful)

The takaful operator's own fund: its capital, fees and expenses, kept apart from the participants' funds.

The shareholders' fund represents the assets and liabilities of a takaful or retakaful undertaking that are not attributable to participants, according to IFSB-29. It holds the operator's capital, receives its wakalah fees or mudarabah share, and bears its management expenses. Keeping it segregated from the participants' funds prevents shareholders from taking surplus that belongs to participants and lets supervisors assess each fund's solvency.

## Sources

- [IFSB-29 Conduct of Business Supervision for Takaful Undertakings, 2023: Definitions, Shareholders' Fund](https://www.ifsb.org/wp-content/uploads/2023/12/IFSB-29-Conduct-of-Business-Supervision-for-Takaful-Undertakings.pdf)

This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.

## Related terms

[**Participants' risk fund** The pool of donated contributions from which takaful claims are paid, owned collectively by participants and managed by the operator.](https://islamicopenfinance.com/glossary/participants-risk-fund/) [**Takaful operator** The entity that manages a takaful business on behalf of participants, usually for a fee, a profit share or both.](https://islamicopenfinance.com/glossary/takaful-operator/) [**Qard** A loan of money to be repaid in an equivalent amount; any benefit stipulated for the lender is riba.](https://islamicopenfinance.com/glossary/qard/) [**Takaful accounting** Accounting for takaful contracts and funds, which keeps the participants' funds and the operator's own accounts distinct.](https://islamicopenfinance.com/glossary/takaful-accounting/)

**Takaful**

1. [Takaful](https://islamicopenfinance.com/glossary/takaful/)
2. [Tabarru](https://islamicopenfinance.com/glossary/tabarru/)
3. [Participants' risk fund](https://islamicopenfinance.com/glossary/participants-risk-fund/)
4. [Participants' investment fund](https://islamicopenfinance.com/glossary/participants-investment-fund/)
5. [Takaful operator](https://islamicopenfinance.com/glossary/takaful-operator/)
6. [Wakalah model (takaful)](https://islamicopenfinance.com/glossary/wakalah-model/)
7. [Takaful participant](https://islamicopenfinance.com/glossary/takaful-participant/)
8. [Underwriting surplus](https://islamicopenfinance.com/glossary/underwriting-surplus/)

[All 221 terms](https://islamicopenfinance.com/glossary/)