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Course Info

About this Course

CORPORATE GOVERNANCE IN ISLAM is a subject offered to undergraduate students of Halal Management and Muamalat programmes in the Academy of Contemporary Islamic Studies, UiTM Shah Alam. This subject is however relevant to all, as it demonstrates the importance of good corporate governance principles from the Western and Islamic viewpoint. Students will learn on the concept of corporate governance and its roles, how it is practiced locally and internationally as well as the Islamic principles of corporate governance. This course helps create awareness on integrity and crimes related to corruption which will be valuable as a lifelong learning lesson and self development for students.

Course Syllabus

Introduction to Corporate Governance
1.1 Conceptual definition
1.2 Development of corporate governance
1.3 Key Players in Corporate Governance

Understanding Corporate Governance
2.1 Theories of corporate governance
2.2 Approaches to corporate governance
2.3 Roles of corporate governance

The Key Dimensions in Corporate Governance
3.1 Company constitution
3.2 A system of rights and duties
3.3 Mechanisms for accountability and transparency


Corporate Governance Principles from Islamic Perspective
4.1 Islamic Corporate Governance Models
4.2 Differences with Western Corporate Governance Models

Corporate Governance Principles from Islamic Perspective
5.1 Absolute ownership belongs to Allah
5.2 Man as Khalifah
5.3 Shura in decision-making
5.4 The Institution of Hisbah
5.5 Bookkeeping and final account
5.6 Shariah supervision

Corporate Governance in Practice
6.1 Organisation Economic Cooperation Development (OECD) Principles of Corporate
Governance
6.2 World Bank Principles of Good Governance
6.3 Malaysian Code on Corporate Governance 2017
6.4 Central Bank of Malaysia Corporate Governance 2019
6.5 Bursa Malaysia Listing Requirements (Chapter 15) 2020

Malaysian Legal Provisions on Corporate Liability
7.1 Companies Act 2016
7.2 Penal Code
7.3 Malaysia Anti-Corruption Commission Act 2009
7.4 Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful
Activities Act 2001

Frequently Asked Questions

Q1 : WHAT IS THE IMPORTANCE OF CORPORATE GOVERNANCE?
A1 : Corporate governance is important because it creates a system of rules and practices that determine how a company operates and how it aligns the interest of all its stakeholders. It underlies the roles, responsibility and accountability of all the key players of corporate governance.

Q2 : HOW DOES ISLAM VIEW CORPORATE GOVERNANCE?
A2 : Islam has its own unique principles which are universal and applicable to all system, including in a corporate governance framework. The concept of vicegerency, accountability to God and trust (amanah) are values that should be held close to the heart as they inculcate the sense of integrity and prevent mismanagement of fund, bribery and other forms of corruption from happening in corporations.