Islamic Law of Business Organization: Corporations

The present volume is a continuation of Imran Ahsan Khan Nyazee's Islamic Law of Business Organization: Partnerships. The present volume, like the previous one, is focused on the ``Islamic Law of Business Organization.'' It builds on the theoretical principles derived from the Islamic sources which bear on business organization and were outlined in volume 1. The quintessential difference between the two volumes is that as distinguished from the previous one the present volume has a more pronouncedly practical and contemporaneous orientation.The present volume, thus, attempts to apply the principles deemed essential from the Islamic point of view to critically examining the modern corporation and in determining if there is any conflict between the principles on which it is structured and the principles of Islamic law. In this regard the present volume carefully considers the concept of corporate personality and also examines the possibility of accommodating that concept within the parameters of Islamic law. In continuation of the previous volume it has also been shown that the sharikah based model with reference to the modern corporation is far more preferable to the mudarabah based model which, as noted in the previous volume, was found defective.In the light of the above, the author attempts to develop an Islamic form of the modern corporation that would be free of riba and of other infractions of Islamic principles from which the current forms of business organization suffer. The author hopes that this Islamized corporation will have the flexibility of the modern corporation and would thus be at once Islamically sound and of contemporary relevance.