ISSN: 2222-6990
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Sustainability is a current phenomenon that is highly concerned by numerous parties. It is argued that company law needs for a reform in both corporate ownership and corporate governance structures within the company by revisiting duties and responsibilities of directors and shareholders in realizing this sustainability agenda. Nevertheless, such reform is not clearly addressed in the Malaysian company law, particularly under the Companies Act (CA) 2016. At the meantime, many discussions affirm the agenda of sustainability from Islamic perspective under the realm of maqasid al-Shariah. Hence, companies undertaking Shariah compliant businesses have initiated on de-liberating some possible actions in exploring this agenda. Yet, the discussion reverts to the corporate ownership and corporate governance structure of these companies which are governed under the CA 2016. In addition, little discussion has focused on corporate ownership and governance structure of sharikah under Shariah and to what extent it facilitates the agenda of sustainability. Therefore, this article aims to discuss two folds. First, what is the scope of sustainability under the conventional standard and its position from Islamic perspective. Second, how business corporate ownership and governance structure of a company, mainly premised on the roles and duties of directors and shareholders, can play the important roles in support of sustainability under the CA 2016, and its comparison from sharikah under the Shariah. This comparison is essential to highlight certain aspects that can be adopted for Shariah-compliant business entities in Malaysia particularly in achieving the sustainability agenda.
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In-Text Citation: (Ramli et al., 2023)
To Cite this Article: Ramli, N., Ghadas, Z. A. A., & Aziz, H. A. (2023). Corporate Ownership and Governance Structure of Corporation in Supporting Sustainability: The Shariah Perspective. International Journal of Academic Research in Business and Social Sciences, 13(13), 1–11.
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