Separate Legal Entity Under Syariah Law and its Application on Islamic Banking in Malaysia: A Note
The principle of separate legal entity – that is, after the incorporation of a company, it is regarded as an artificial person or juridical person who has the rights and responsibilities similar to a living person - has been widely accepted and applied in the world of business, trade and industry....
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Universiti Utara Malaysia
2020-01-01
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| Series: | The International Journal of Banking and Finance |
| Subjects: | |
| Online Access: | https://www.e-journal.uum.edu.my/index.php/ijbf/article/view/8394 |
| _version_ | 1797958195698728960 |
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| author | Zainal Amin Ayub Zuryati Mohamed Yusoff Ahmad Nasyran Azrae |
| author_facet | Zainal Amin Ayub Zuryati Mohamed Yusoff Ahmad Nasyran Azrae |
| author_sort | Zainal Amin Ayub |
| collection | DOAJ |
| description | The principle of separate legal entity – that is, after the incorporation of a company, it is regarded as an artificial person or juridical person who has the rights and responsibilities similar to a living person - has been widely accepted and applied in the world of business, trade and industry. In Malaysia, an Islamic banking institution is incorporated under the Companies Act 1965 where after its incorporation, it becomes a legal entity separated from its members and shareholders. In the case of Bank Islam Malaysia Berhad v. Adnan bin Omar (1994), the court held that Bank Islam Malaysia Berhad is a corporate institution created by statute. This case has been decided based on civil law system, not under the Islamic legal system. Since the products offered by an Islamic banking institution is solely in harmony with Islamic principles, one fundamental legal question yet to be resolved is whether the principle of separate legal entity is recognised under the Syariah law. This paper aims to discuss the issue of separate legal entity in Islam and its application to the Islamic banking institutions.
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| first_indexed | 2024-04-11T00:15:30Z |
| format | Article |
| id | doaj.art-8c26d86ef5254badba5d4401bc167037 |
| institution | Directory Open Access Journal |
| issn | 2811-3799 2590-423X |
| language | English |
| last_indexed | 2024-04-11T00:15:30Z |
| publishDate | 2020-01-01 |
| publisher | Universiti Utara Malaysia |
| record_format | Article |
| series | The International Journal of Banking and Finance |
| spelling | doaj.art-8c26d86ef5254badba5d4401bc1670372023-01-09T03:07:58ZengUniversiti Utara MalaysiaThe International Journal of Banking and Finance2811-37992590-423X2020-01-0162Separate Legal Entity Under Syariah Law and its Application on Islamic Banking in Malaysia: A NoteZainal Amin Ayub0Zuryati Mohamed Yusoff1Ahmad Nasyran Azrae2University Utara MalaysiaUniversiti Utara MalaysiaUniversiti Utara MalaysiaThe principle of separate legal entity – that is, after the incorporation of a company, it is regarded as an artificial person or juridical person who has the rights and responsibilities similar to a living person - has been widely accepted and applied in the world of business, trade and industry. In Malaysia, an Islamic banking institution is incorporated under the Companies Act 1965 where after its incorporation, it becomes a legal entity separated from its members and shareholders. In the case of Bank Islam Malaysia Berhad v. Adnan bin Omar (1994), the court held that Bank Islam Malaysia Berhad is a corporate institution created by statute. This case has been decided based on civil law system, not under the Islamic legal system. Since the products offered by an Islamic banking institution is solely in harmony with Islamic principles, one fundamental legal question yet to be resolved is whether the principle of separate legal entity is recognised under the Syariah law. This paper aims to discuss the issue of separate legal entity in Islam and its application to the Islamic banking institutions. https://www.e-journal.uum.edu.my/index.php/ijbf/article/view/8394separate legal entityIslamic banking institutionsSyariahjuridical personcompany |
| spellingShingle | Zainal Amin Ayub Zuryati Mohamed Yusoff Ahmad Nasyran Azrae Separate Legal Entity Under Syariah Law and its Application on Islamic Banking in Malaysia: A Note The International Journal of Banking and Finance separate legal entity Islamic banking institutions Syariah juridical person company |
| title | Separate Legal Entity Under Syariah Law and its Application on Islamic Banking in Malaysia: A Note |
| title_full | Separate Legal Entity Under Syariah Law and its Application on Islamic Banking in Malaysia: A Note |
| title_fullStr | Separate Legal Entity Under Syariah Law and its Application on Islamic Banking in Malaysia: A Note |
| title_full_unstemmed | Separate Legal Entity Under Syariah Law and its Application on Islamic Banking in Malaysia: A Note |
| title_short | Separate Legal Entity Under Syariah Law and its Application on Islamic Banking in Malaysia: A Note |
| title_sort | separate legal entity under syariah law and its application on islamic banking in malaysia a note |
| topic | separate legal entity Islamic banking institutions Syariah juridical person company |
| url | https://www.e-journal.uum.edu.my/index.php/ijbf/article/view/8394 |
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