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The system similar to that of modern corporate body did not exist at the
time of early periods of Islam, nor is there any express provision in
Islamic Sources of Sharī‘ah on the concepts associated with present day
companies. Therefore, the scholars of Islam differed in their viewpoints
on the juridical personality of a ‘body corporate’ extending arguments
both favouring and disfavouring it. Earliest contemporary work/ rulings
on this issue could be traced back to beginning of the 20th Century
(Rahim, 1908). Further works on the subject divulge diverse view of
scholars/‘ulamā. The difference of opinion got intensified in the beginning
of 21th Century when Islamic banking was re-launched in Pakistan. While
the viewpoint of both, the proponents as well as opponents may be
relevant, the author after discussing the arguments concludes that the view
of the proponents is more authentic and convincing and has accordingly
discussed and concluded that Islamic banks with their present character
are not un-Islamic as far as their juridical capacity is concerned.
Shafiq ur Rahman. (2016) Appraisal of Some Scholastic Views on Juridical Personality with reference to Islamic Banking Companies, Journal of Islamic Business and Management, Volume 6, Issue 1.
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