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Shiur Summary by Dayan Shlomo Cohen
We are not allowed to own any Hametz over Pessah. The custom in most communities today is to sell the Hametz in our possession to a non-Jew over Pessah. What happens if you own shares in companies that deal with Hametz?
Let us explain how corporations work. According to law, a corporation is considered to be a separate entity, apart from the shareholders. That’s why it is also has limited liability, meaning that it is not liable for more than the value of its assets, while its shareholders are exempt. Is such a type of ownership a problem of owning Hametz?
There are two types of corporations: a private corporation, in which the shareholders have a say and power to influence the company’s decisions. Such a company would be viewed by Halacha as a partnership and – although there would be a limited liability according to Halacha – there would still be a problem of owning its Hametz.
However, with regards to a public company with millions of shares, even though they may have some “voting” rights, they cannot exert any influence as to the running of the company. Rav Moshe Feinstein points to this fact and permits one to own shares in such companies although they own Hametz (he understands that owning a share is merely buying a portion of the profits of the company). If one owns a significant percentage of the shares this may be a problem.
This logic would also permit one to own stocks in companies that are: dealing in non-Kosher items; open on Shabbat or lending with interest. The Minhat Yitzhak argues on Rav Moshe and forbids owning even minimal amounts of stock. Thus, the Sale of Hametz contract in many places includes selling one’s stocks (which would raise an issue with regards to dividends given on Pessah). According to the Minhat Yitzhak it would seem that one shouldn’t own any stocks, due to the other transgressions involved.
Pension funds also invest in stocks, and would be included in this issue according to the Minhat Yitzhak. Some say that the Minhat Yitzhak would agree in such a case.