The financial distress of corporate personality: a perspective from fiqh

Basri, Saheed Abdullahi and Zakariyah, Luqman and Muhammad, Amanullah and Abdul Aziz, Akhtarzaitie (2019) The financial distress of corporate personality: a perspective from fiqh. Intellectual Discourse, 27 (1). pp. 245-268. ISSN 0128-4878 E-ISSN 2289-5639

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Abstract

Oriental scholars discuss the concept of corporate personality without any reference to Islamic law. A leading proponent of this view is Joseph Schacht; a western scholar of jurisprudence who contended that Islamic jurisprudence is limited to individual personality and devoid of corporate laws, hence, contractual agreements between corporations has no basis in Islamic law. Several scholars and researcher have responded with sufficient literature on the status of an artificial person in Islamic law, but there are still issues with the legal implication of corporate personality in the event of financial distress. This study aims to explore Islamic threshold on fundamental principles of corporate personalities and its contemporary applications in the situation of financial trouble. The study will employ the analytical approach in describing the essential characteristics of a corporation as inherent in Islamic law through interpolation from the natural person and the possibility of adapting the existing conventional bankruptcy laws. This study employs an analytical approach to Islamic literature and regular related works. The study found out that even though the concept of financial distress has basis in Islamic law, it remains complicated as it entails insolvency, bankruptcy and interdiction in a debtor-creditor relationship. Overall, further efforts need to be done to put these concepts into contemporary and applicable perspectives without violating Islamic fundamental principle of justice and fair dealings. Copyright © IIUM Press. ****************************************************************** Para ulama Oriental berpendapat bahawa kepribadian korporat sebagai konsep tanpa asas dalam undang-undang Islam. Penyokong utama pandangan ini ialah Joseph Schacht; seorang sarjana barat jurisprudensi yang berpendapat bahawa perundangan Islam adalah terhad kepada keperibadian individu dan tidak mempunyai undang-undang korporat, oleh itu, perjanjian kontrak antara syarikat tidak mempunyai dasar dalam undang-undang Islam. Beberapa sarjana dan penyelidik telah menanggapi dengan sastera yang mencukupi tentang status seseorang yang tidak disengajakan dalam undang-undang Islam, tetapi masih ada isu-isu dengan implikasi undang-undang keperibadian korporat dalam keadaan kesulitan kewangan. Kajian ini bertujuan untuk meneroka ambang Islam pada prinsip asas personaliti korporat dan aplikasi kontemporarinya dalam keadaan masalah kewangan. Kajian ini akan menggunakan pendekatan analitik dalam menggambarkan ciri-ciri penting sebuah syarikat yang wujud dalam undang-undang Islam menerusi interpolasi dari orang asli dan kemungkinan menyesuaikan undang-undang muflis konvensional yang sedia ada. Kajian ini menggunakan pendekatan analitik terhadap kesusasteraan Islam dan kerja-kerja berkaitan tetap. Kajian itu mendapati bahawa walaupun konsep kesulitan kewangan mempunyai asas dalam undang-undang islam, ia tetap rumit kerana ia melibatkan ketidakmampuan bayar, muflis dan penahanan dalam hubungan penghutang penghutang. Secara keseluruhan, usaha selanjutnya perlu dilakukan untuk meletakkan konsep-konsep ini ke dalam perspektif kontemporari dan terpakai tanpa melanggar prinsip keadilan asas Islam dan urusan adil.

Item Type:	Article (Journal)
Additional Information:	6964/79858
Uncontrolled Keywords:	Financial Distress, Artificial personality, Corporation, Islamic Jurisprudence, Kecacatan Kewangan, Keperibadian Buatan, Perbadanan, Perundangan Islam
Subjects:	H Social Sciences > HG Finance H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Islamic Revealed Knowledge and Human Sciences Kulliyyah of Islamic Revealed Knowledge and Human Sciences > Department of Fiqh and Usul al-Fiqh
Depositing User:	Dr Luqman Zakariyah
Date Deposited:	26 Mar 2020 15:24
Last Modified:	03 Apr 2020 03:10
URI:	http://irep.iium.edu.my/id/eprint/79858

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