The law governing lslamic partnership in the Malaysian lslamic banking and financial institutions: A legal analysis

TL;DRAbstract

In Malaysia, the lslamic banking and financial products must comply with shariah (Islamic law) and the Malaysian law.The Partnership Act 1961 (Act 135) ('PAY governs all partnership undertakings.However, there is no statute controlling lslamic Partnership products.Do lslamic Partnership products likewise subject to the PA? There is nothing in the PA to indicate that lslamic Partnership does not fall under it. Nevertheless, the lslamic Financial Institutions Act 2013 (Act 759) ('IFSA] provides that all lslamic banking and financial products including lslamic partnership must comply with shariah. But, how if shariah is in conflict with the PA? Will this not affect the validity of lslamic Partnership products? This paper highlights the governing law issues with regard to lslamic Partnership in Malaysia.The authors used legal research methodology to discuss the issues.The authors also provide some suggestions to warrant the validity of lslamic Partnership, both in the law and shariah persp

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