Decreasing partnership (al-mushārakah al-mutanāqisah) for asset and venture financing: realizing Shari‘ah essentials

Sadique, Muhammad Abdurrahman (2011) Decreasing partnership (al-mushārakah al-mutanāqisah) for asset and venture financing: realizing Shari‘ah essentials. In: IIUM International Accounting Conference V (INTAC V), 12-13 July, 2011, Pan Pacific Kuala Lumpur International Airport, Malaysia.

Preview	PDF (Decreasing partnership (Al-mushārakah Al-mutanāqisah) for asset and venture financing: realizing Shari‘ah essentials) - Published Version Download (561kB) | Preview
	PDF (Tentative programme) - Cover Image Restricted to Registered users only Download (808kB) | Request a copy

Abstract

Al-mushārakah al-mutanāqiÎah or decreasing equity partnership based modes could be used for financing asset procurement as well as projects in a variety of situations. The shari„ah admissibility of this mode essentially depends on the reality and independent functioning of the various contracts. Diverse capacities the parties undertake through the component contracts should be effectively reflected, especially through fulfilling the duties pertaining to ownership and lease, and accepting the liabilities involved. Gaining legal recognition for the component contracts should be attempted for. In decreasing partnership for ventures, the equity structure should not be based on terms favourable to one party alone. Replacing the legally binding promise to purchase with an understanding to that effect, giving the partners a choice in the matter, could be more conducive towards the equity relationship.

Item Type:	Conference or Workshop Item (Full Paper)
Additional Information:	5640/7258
Uncontrolled Keywords:	partnership, decreasing equity partnership, al-mushārakah al-mutanāqisah, asset financing, venture financing, contract, Shari‘ah, Islamic law
Subjects:	H Social Sciences > HG Finance > HG1501 Banking H Social Sciences > HG Finance > HG179 Personal finance K Law > KBP Islamic Law > KBP1 Islamic law.Shariah.Fiqh > KBP173.25 Islamic law and other disciplines or subjects
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Ahmad Ibrahim Kulliyyah of Laws > Department of Islamic Law
Depositing User:	Dr Muhammad Abdurrahman Sadique
Date Deposited:	13 Dec 2011 13:38
Last Modified:	27 Feb 2014 16:39
URI:	http://irep.iium.edu.my/id/eprint/7258

Actions (login required)

View Item