What is Considered a Jewish-Owned Company?

A company can be considered Jewish-owned if even one of the partners is Jewish. But what constitutes a Jewish partner? Do we need to be concerned about a partner who owns less than 1%?This question is also relevant for anyone who owns shares of stock. If one owns ten shares of stock in “Mega-Bakery” Corporation, must it be sold before Pesach? Rav Belsky, zt”l would distinguish between two types of partnerships. There are partners who get together and pool their resources and start a company. These partners own an absolute share in the entire company and its inventory, even if they only invested a small amount. Such a partner would need to divest ownership before Pesach, or the business would need to be closed. However, regarding purchase of stock in a company, Rav Belsky ruled that it would depend on whether one has any say in the management of the company. For example, if one purchases 5% of the stock of a company and can now influence decisions at the company, then that person is a partner. Otherwise, it is understood that the purchase of stock only gives that individual rights to share in the future revenue, but he or she is not a decision making, influential partner in the business.

The Gerald & Karin Feldhamer OU Kosher Halacha Yomis is dedicated to the memory of Rav Yisroel Belsky, zt"l, who served as halachic consultant for OU Kosher for more than 28 years; many of the responses in Halacha Yomis are based on the rulings of Rabbi Belsky. Subscribe to the Halacha Yomis daily email here.