Corporate Personality from an Islamic Perspective

in Arab Law Quarterly
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Corporate personality is said to be a Western concept, but is it also Islamic? Answering this question is a demand of the day in view of the ever-increasing number of Islamic commercial and financial entities. For example, the legal personality of the first Islamic Bank of Malaysia, Bank Islam Malaysia Berhad, has been brought to question following an unreported case, Bank Islam Malaysia Bhd. v. Adnan Bin Omar (1994). In an attempt to answer this question, this article overviews the arguments of Islamic jurists on this issue and puts forward its own judgment.

Corporate Personality from an Islamic Perspective

in Arab Law Quarterly



  • 2

    John William SalmondJurisprudence (London: Sweet & Maxwell1924) 329.

  • 4

    See Judson A. Crane“Uniform Partnership Act and Legal Personality”Harvard Law Review29 (1916): 838note 9.

  • 5

    497 U.S. 261 287 (1990).

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    William Lucy“Persons in law”Oxford Journal of Legal Studies29 (2009): 787 at 790.

  • 16

    See Janet McLean“Government to state: Globalization, regulation, and governments as legal persons”Indiana Journal of Global Legal Studies 10/1 (2003): 173-197.

  • 27

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    Mahdi Zahrā‘Legal personality in Islamic law’Arab Law Quarterly10(3)(1995): 193-206.

  • 37

    Bakhtiarsupra note 35 at 375.

  • 43

    E.g. Nyazeesupra note 27 at 77; Mujlisul Ulama of South Africa The Concept of Limited Liability—Untenable in the Shari’ah at (visited on 4/1/2011).

  • 44

    See Zahrāsupra note 32 at 204; and Abd al-Qadir Al-Tashri al-Jinni (Beirut: Dār al-Khatibi Vol.1 cited in Mahmud M. Sanusi “The concept of artificial legal entity and limited liability in Islamic law” in Critical Issues on Islamic Banking Finance & Takaful (2009) at (visited on 17 February 2012).

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    See Mohammad Hashim KamaliPrinciples of Islamic Jurisprudence (Cambridge: The Islamic Texts Society2003) 356-360.

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    See Sanusisupra note 44.

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  • 91

    AIR 1993 Supreme Court 2086.

  • 93

    Sanusisupra note 44.

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    Imran Ahsan Khan NyazeeIslamic Jurisprudence (Petaling Jaya, Malaysia: The Other Press2003) 117.

  • 99

    Zakāt HouseZakāt Rules (Kuwait: Public Relations and Information Department2001) 41.

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