BLOG OF KNOWLEDGE

My Selected Publication

3 Comments »

1. 

   maryama Said:

   on January 14, 2009 at 6:13 pm

   help me i am a student.i need some data for completion of my project.principle of limited company,joint stock company,islamic corporation islamically.

   Reply
   • 

     ZULKIFLI HASAN Said:

     on January 14, 2009 at 9:09 pm

     Salam,

     You may refer to Nyazee, I.A.K. (2006). Islamic Law of Business Organization Partnerships. Petaling Jaya, Selangor: The Other Press Sdn. Bhd.
     Nyazee, I.A.K. (1998). Islamic Law of Business Organization Corporations. Islamic Law and Jurisprudence, Volume 2. Islamabad: The Islamic Research Institute Press.

     Although the concept of partnership in the form of musyarakah or mudharabah is well known since in the early period of Islam, it is found that there is less discussion on a concept akin to the corporation . In fact, Kuran, (2005) writes that the corporation was absent from the Middle East until the nineteenth century . One of the reasons is that the role of unincorporated trust or waqf which is able to stimulate the economy and provided additional fund to the state and therefore less demand for commercial or financial organizations in the form of corporation is needed for sake of boosting tax revenue . Only in 1851, in Istanbul, the first Muslim-owned joint-stock company of the Ottoman Empire known as the Sirket Hayriye, a marine transportation company, was established with 2,000 tradable shares. The largest shareholder of the Sirket Hayriye was Sultan Abdul Mecit followed by the government officials and prominent financiers (Kuran, 2005: 785-786).

     It is contended that the corporate form of business organization with a separate legal entity does not appear directly in the classical fiqh discussions by Muslim jurists. Vogel, (2006: 133-134, 167-169) mention that classical Islamic law only discusses a concept of partnership and not modern companies with an artificial personality. Nevertheless, such contention is not truly accurate as the Muslim jurists have already accepted a concept of corporation known as Shahsiyah I’tibariyah (fictitious person) based on principles of qiyas (analogy) and istihsan (equity) or masalih mursalah (public interest) (Ghazali, 2005:456). In fact, the existence of public treasury (Bayt al-Mal) and Waqf implies the recognition on the concept of corporation with separate legal entity. Although there was no corporation during the time of the Prophet Muhammad, the notion of such concept has already existed in the form of limited partnership or Syarikah al-Inan where the shareholders may sell their shares in the market and their liability is limited . In addition, the structure of joint-stock-company is a variation of the concept of mudharabah where it acknowledges the notion of separation of ownership and control (Abdul Rahim. 1998: 60-61) .
     Nyazee, (2006: 297-301) clearly states that the earlier Muslim jurists were fully aware of the concept of corporate personality but they rejected it for the system they were dealing with. He further mentions that most of Muslims modern scholars claim that this concept was known to Islamic law and only some of the scholars are doubtful on this position. Nyazee, (1998) views that the legal personality did exist in an undeveloped form as contained in the principle of aqila . In term of appropriate model of corporation, he proposes that the Islamic corporation to be based on the principle of wakala. Dien, (2001: 329-331) in his commentaries on Nyazee, (1998) states that the concept of corporate legal personality can be found in the institution of bayt al-mal (Muslim Treasury) or awqaf and the system of aqila whereby the former refers to private corporation and the latter refers to public corporation .

     Reply
2. 

   ahmed amin Said:

   on October 13, 2009 at 10:31 am

   pls assist me with ur articles on islamic finance

   Reply

{ RSS feed for comments on this post} · { TrackBack URI }