Corporate governance and effective dispute management in Islamic financial institutions

Oseni, Umar Aimhanosi and Ansari, Abdul Haseeb and Kadouf, Hunud Abia (2012) Corporate governance and effective dispute management in Islamic financial institutions. Australian Journal of Basic and Applied Sciences, 6 (11). pp. 361-369. ISSN 1991-8178

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Abstract

The increasing growth of the Islamic finance industry and the proliferation of Islamic financial products in the global economy necessitate a framework for managing corporate disputes arising from internal differences and contractual relationships with third parties, particularly in banker customer relationships. Quality management in Islamic financial institutions can be sustained through appropriate measures in managing such disputes effectively through some Sharī'ah-based mechanisms. This study examines corporate governance and dispute effective dispute management within the framework of Islamic financial institutions and the need to revive the administrative dispute resolution office of muhtasib (ombudsman). The study presents a model for fusing such an independent office into the corporate structure of the financial institutions in order to promote effective governance. It is argued that instead of litigating petty claims against the financial institutions, the internal mechanism of muhtasib should be able to resolve such claims amicably without unnecessary escalation into full blown disputes. The paper concludes that such an office, which serves the purpose of corporate self regulation integrated into the corporate structure of the financial institution, will promote sustainable excellence.

Item Type:	Article (Journal)
Additional Information:	6807/27858
Subjects:	K Law > K Law (General) K Law > KBP Islamic Law > KBP1 Islamic law.Shariah.Fiqh > KBP425 Uṣūl al-fiqh. Jurisprudence and theory of law. Science of legal reasoning.
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Ahmad Ibrahim Kulliyyah of Laws > Department of Civil Law
Depositing User:	Dr. Umar Aimhanosi Oseni
Date Deposited:	27 Dec 2012 08:59
Last Modified:	14 Jul 2013 14:59
URI:	http://irep.iium.edu.my/id/eprint/27858

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