Critical analysis on the essence of muḍārabah and mushārakah and its relation to ḍamān

This study aims to explore the permissibility of guarantee for muḍārabah and mushārakah based contracts and to discuss in detail the essence of muḍārabah and mushārakah, which both contracts contain the concepts of trust and profit sharing. The study conducted the qualitative research approaches...

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Main Authors: Mohamed Naim, Asmadi, Long, Muhamad Noor Habibi, Md Hussein, Muhammad Nasri, Abu Bakar, Mahyuddin
Format: Article
Language:English
Published: Universiti Utara Malaysia 2018
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Online Access:http://repo.uum.edu.my/27703/1/MMJ%2022%202018%201%2018.pdf
http://repo.uum.edu.my/27703/
http://e-journal.uum.edu.my/index.php/mmj/article/view/9668
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Institution: Universiti Utara Malaysia
Language: English
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spelling my.uum.repo.277032020-10-08T11:35:06Z http://repo.uum.edu.my/27703/ Critical analysis on the essence of muḍārabah and mushārakah and its relation to ḍamān Mohamed Naim, Asmadi Long, Muhamad Noor Habibi Md Hussein, Muhammad Nasri Abu Bakar, Mahyuddin HG Finance This study aims to explore the permissibility of guarantee for muḍārabah and mushārakah based contracts and to discuss in detail the essence of muḍārabah and mushārakah, which both contracts contain the concepts of trust and profit sharing. The study conducted the qualitative research approaches which consist of documents analysis, interviews and observations in few phases. The study found that there are few matters that can be listed as genuine essence of muḍārabah and mushārakah. It also found that the majority of scholars were of the view of prohibiting capital guarantee by partners. It also proved that few statements such as Ibn Taymiyah’s statement were quoted out of context and definitely not appropriate to attribute the stance of those who allowed capital guarantee to him by using his statements, as those statements showed something else. However, a third party may undertake to bear the loss of capital due to misconduct or negligence on the part of the manager for both contracts. The rabb al-māl (capital provider) may also take collateral from the muḍārib, provided that the collateral can only be liquidated in the event of negligence or misconduct or violation of contractual terms by the muḍārib. Universiti Utara Malaysia 2018 Article PeerReviewed application/pdf en http://repo.uum.edu.my/27703/1/MMJ%2022%202018%201%2018.pdf Mohamed Naim, Asmadi and Long, Muhamad Noor Habibi and Md Hussein, Muhammad Nasri and Abu Bakar, Mahyuddin (2018) Critical analysis on the essence of muḍārabah and mushārakah and its relation to ḍamān. Malaysian Management Journal, 22. pp. 1-8. ISSN 0128-6226 http://e-journal.uum.edu.my/index.php/mmj/article/view/9668
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutional Repository
url_provider http://repo.uum.edu.my/
language English
topic HG Finance
spellingShingle HG Finance
Mohamed Naim, Asmadi
Long, Muhamad Noor Habibi
Md Hussein, Muhammad Nasri
Abu Bakar, Mahyuddin
Critical analysis on the essence of muḍārabah and mushārakah and its relation to ḍamān
description This study aims to explore the permissibility of guarantee for muḍārabah and mushārakah based contracts and to discuss in detail the essence of muḍārabah and mushārakah, which both contracts contain the concepts of trust and profit sharing. The study conducted the qualitative research approaches which consist of documents analysis, interviews and observations in few phases. The study found that there are few matters that can be listed as genuine essence of muḍārabah and mushārakah. It also found that the majority of scholars were of the view of prohibiting capital guarantee by partners. It also proved that few statements such as Ibn Taymiyah’s statement were quoted out of context and definitely not appropriate to attribute the stance of those who allowed capital guarantee to him by using his statements, as those statements showed something else. However, a third party may undertake to bear the loss of capital due to misconduct or negligence on the part of the manager for both contracts. The rabb al-māl (capital provider) may also take collateral from the muḍārib, provided that the collateral can only be liquidated in the event of negligence or misconduct or violation of contractual terms by the muḍārib.
format Article
author Mohamed Naim, Asmadi
Long, Muhamad Noor Habibi
Md Hussein, Muhammad Nasri
Abu Bakar, Mahyuddin
author_facet Mohamed Naim, Asmadi
Long, Muhamad Noor Habibi
Md Hussein, Muhammad Nasri
Abu Bakar, Mahyuddin
author_sort Mohamed Naim, Asmadi
title Critical analysis on the essence of muḍārabah and mushārakah and its relation to ḍamān
title_short Critical analysis on the essence of muḍārabah and mushārakah and its relation to ḍamān
title_full Critical analysis on the essence of muḍārabah and mushārakah and its relation to ḍamān
title_fullStr Critical analysis on the essence of muḍārabah and mushārakah and its relation to ḍamān
title_full_unstemmed Critical analysis on the essence of muḍārabah and mushārakah and its relation to ḍamān
title_sort critical analysis on the essence of muḍārabah and mushārakah and its relation to ḍamān
publisher Universiti Utara Malaysia
publishDate 2018
url http://repo.uum.edu.my/27703/1/MMJ%2022%202018%201%2018.pdf
http://repo.uum.edu.my/27703/
http://e-journal.uum.edu.my/index.php/mmj/article/view/9668
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