What is Musyarakah (shirkah)?
11.1 Generally, there are two types of musyarakah (shirkah),namely: (a) Shirkah al-Milk(Partnership in joint ownership) Refers to possession of an asset by two or more persons with or without prior arrangement to enter into a sharing in joint ownership. Under shirkah al-milk, each partner’s ownership is mutually exclusive.
What is Musyarakah financing?
S 31.1 Musyarakahfinancing refers to a financing using a musyarakahcontract structured to reflect a debt-based financing risk profile which is in line with the Shariah concept of shirkah al-milk. S31.2 The operational requirements for musyarakahfinancing shall be similar to the requirements and expectations for debt-based financing.
What are the circumstances under which a Musyarakah can be dissolved?
S 24.1 A musyarakahcontract is dissolved under the following circumstances: (a) mutual agreement to terminate; (b) contract expires upon the maturity date agreed by the partners; (c) demise or dissolution of partners; (d) loss of legal capacity; (e) the total acquisition by one partner of the other partners’ share of
What is the legitimacy of the Musyarakah?
The legitimacy of the musyarakahcontract is based on the Qur’an, the Sunnah of the Prophet Muhammad (peace be upon him) and the consensus of Muslim jurists. The Quran