Shari’ah corporate governance: the need for a special governance code
With the advent of Islamic banking, a new species was added to the banking system which was then, only dominated by the conventional banking. Islamic banking expanded in the world within the last decade and as a result, Islamic finance emerged as an alternative to the conventional finance. This c...
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Emerald Group Publishing
2014
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| Online Access: | http://irep.iium.edu.my/46932/ http://irep.iium.edu.my/46932/ http://irep.iium.edu.my/46932/ http://irep.iium.edu.my/46932/1/46932_-_Shari%27ah_corporate_governance__the_need_for_a_special_governance_code.pdf http://irep.iium.edu.my/46932/4/46932_Shari%E2%80%99ah%20corporate%20governance_scopus.pdf |
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iium-469322017-09-26T01:31:26Z http://irep.iium.edu.my/46932/ Shari’ah corporate governance: the need for a special governance code Hassan, Rusni Muneeza, Aishath HG Finance With the advent of Islamic banking, a new species was added to the banking system which was then, only dominated by the conventional banking. Islamic banking expanded in the world within the last decade and as a result, Islamic finance emerged as an alternative to the conventional finance. This created Islamic companies and Islamic financial institutions which operate based on the principles of Shari’ah or Islamic Law. These Islamic corporate bodies, like the conventional corporate bodies do need good governance rules. In other words, they also need a good, sophisticated ‘‘Shari’ah Governance Code’’ which would be based on the principle of Islamic Law. This is mainly because the objective of the conventional and the Islamic Corporate governance is different as conventional corporate governance structure is more focused on the protection of the rights of the stakeholders; while Islamic corporate governance focus on retaining the Islamicity of whole corporation. The objective of this research is, as the title suggests, proposing the reasons why a special governance Code for Shari’ah corporate bodies are needed. This paper would suggest a proper governance structure to the Islamic companies and will also discuss why the conventional corporate governance Codes are unsuitable for the Islamic companies Design/methodology/approach – This research which is primarily library based, is an exploratory legal research in nature. Findings – In the course of this research, it is found that there is a need to enact a Shari’ah Corporate Governance Code due to the widespread establishment of shari’ah compliant companies in the world. Hence, the authors had discussed the potential content of such a Code in this paper. Originality/value – This research will complement the knowledge based on shari’ah corporate governance and is targeted to the existing and prospective shari’ah compliant companies. Keywords Law, Corporate governance, Islamic finance, Islamic banking, Corporate responsibility, Shari’ah governance Paper type Conceptual paper Emerald Group Publishing 2014 Article PeerReviewed application/pdf en http://irep.iium.edu.my/46932/1/46932_-_Shari%27ah_corporate_governance__the_need_for_a_special_governance_code.pdf application/pdf en http://irep.iium.edu.my/46932/4/46932_Shari%E2%80%99ah%20corporate%20governance_scopus.pdf Hassan, Rusni and Muneeza, Aishath (2014) Shari’ah corporate governance: the need for a special governance code. Corporate Governance, 14 (1). pp. 120-129. ISSN 1472-0701 http://www.emeraldinsight.com/doi/abs/10.1108/CG-02-2011-0015 http://dx.doi.org/10.1108/CG-02-2011-0015 |
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Digital Repository |
| institution_category |
Local University |
| institution |
International Islamic University Malaysia |
| building |
IIUM Repository |
| collection |
Online Access |
| language |
English English |
| topic |
HG Finance |
| spellingShingle |
HG Finance Hassan, Rusni Muneeza, Aishath Shari’ah corporate governance: the need for a special governance code |
| description |
With the advent of Islamic banking, a new species was added to the banking system which
was then, only dominated by the conventional banking. Islamic banking expanded in the world within the
last decade and as a result, Islamic finance emerged as an alternative to the conventional finance. This
created Islamic companies and Islamic financial institutions which operate based on the principles of
Shari’ah or Islamic Law. These Islamic corporate bodies, like the conventional corporate bodies do need
good governance rules. In other words, they also need a good, sophisticated ‘‘Shari’ah Governance
Code’’ which would be based on the principle of Islamic Law. This is mainly because the objective of the
conventional and the Islamic Corporate governance is different as conventional corporate governance
structure is more focused on the protection of the rights of the stakeholders; while Islamic corporate
governance focus on retaining the Islamicity of whole corporation. The objective of this research is, as
the title suggests, proposing the reasons why a special governance Code for Shari’ah corporate bodies
are needed. This paper would suggest a proper governance structure to the Islamic companies and will
also discuss why the conventional corporate governance Codes are unsuitable for the Islamic
companies
Design/methodology/approach – This research which is primarily library based, is an exploratory
legal research in nature.
Findings – In the course of this research, it is found that there is a need to enact a Shari’ah Corporate
Governance Code due to the widespread establishment of shari’ah compliant companies in the world.
Hence, the authors had discussed the potential content of such a Code in this paper.
Originality/value – This research will complement the knowledge based on shari’ah corporate
governance and is targeted to the existing and prospective shari’ah compliant companies.
Keywords Law, Corporate governance, Islamic finance, Islamic banking, Corporate responsibility,
Shari’ah governance
Paper type Conceptual paper |
| format |
Article |
| author |
Hassan, Rusni Muneeza, Aishath |
| author_facet |
Hassan, Rusni Muneeza, Aishath |
| author_sort |
Hassan, Rusni |
| title |
Shari’ah corporate governance: the need for a special governance code |
| title_short |
Shari’ah corporate governance: the need for a special governance code |
| title_full |
Shari’ah corporate governance: the need for a special governance code |
| title_fullStr |
Shari’ah corporate governance: the need for a special governance code |
| title_full_unstemmed |
Shari’ah corporate governance: the need for a special governance code |
| title_sort |
shari’ah corporate governance: the need for a special governance code |
| publisher |
Emerald Group Publishing |
| publishDate |
2014 |
| url |
http://irep.iium.edu.my/46932/ http://irep.iium.edu.my/46932/ http://irep.iium.edu.my/46932/ http://irep.iium.edu.my/46932/1/46932_-_Shari%27ah_corporate_governance__the_need_for_a_special_governance_code.pdf http://irep.iium.edu.my/46932/4/46932_Shari%E2%80%99ah%20corporate%20governance_scopus.pdf |
| first_indexed |
2023-09-18T21:06:47Z |
| last_indexed |
2023-09-18T21:06:47Z |
| _version_ |
1777410986716692480 |