Developing a Model for Corporate Governance and Conflict of Interest Deterrence in Shari’ahbased Cooperatives

50 Pages Posted: 19 Dec 2018

See all articles by Zurina Shafii

Zurina Shafii

Universiti Sains Malaysia (USM)

Mohammed Obaidullah

Islamic Development Bank

Rose Ruziana Samad

Independent

Date Written: Jul 11, 2017

Abstract

Different from a conventional cooperative, a Shari’ah-based cooperative observes Shari’ah principles. As these cooperatives offers Islamic financial products and involves in Shari’ah compliant investment, they are bound to observe Shari’ah governance structure, transparency, disclosure of information and strict compliance with Shari’ah principles. Compliance with the Shari’ah principles will strengthen public confidence in the credibility of the system of the Islamic Muamalat particularly in the cooperative movement. Due to the infancy of Shari’ahbased cooperative industry that needs for proper governance measures, this paper aims to discuss corporate governance in Shari’ah-based cooperatives in the attempt to propose a model for resolving stakeholders’ conflicts of interest

Keywords: Microfinance; Cooperatives; Shari’ah; Corporate Governance

Suggested Citation

Shafii, Zurina and Obaidullah, Mohammed and Samad, Rose Ruziana, Developing a Model for Corporate Governance and Conflict of Interest Deterrence in Shari’ahbased Cooperatives (Jul 11, 2017). IRTI Policy Paper No. 2017-03, Available at SSRN: https://ssrn.com/abstract=3303692 or http://dx.doi.org/10.2139/ssrn.3303692

Zurina Shafii (Contact Author)

Universiti Sains Malaysia (USM) ( email )

Jalan Sungai Dua
Minden, Penang 11800
Malaysia

Mohammed Obaidullah

Islamic Development Bank ( email )

P. Box. 5925
Private Sector
Jeddah, 21432
Saudi Arabia

Rose Ruziana Samad

Independent ( email )

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