Universiti Teknologi Malaysia Institutional Repository

Sole proprietorship business succession in Malaysia: a perspective of civil and islamic law

Hamdan, Afifah and Nor Muhamad, Nasrul Hisyam and Kamarudin, Mohd. Khairy and Darawi, Abdul Basit Samat and Ab. Rahim, Nik Mohd. Zaim and Mohamad Norzilan, Nur Izzati (2022) Sole proprietorship business succession in Malaysia: a perspective of civil and islamic law. The Journal of Asian Finance, Economics and Business, 9 (3). pp. 285-293. ISSN 2288-4637

Full text not available from this repository.

Official URL: http://dx.doi.org/10.13106/jafeb.2022.vol9.no3.028...


Issues relating to business inheritance are a primary focus for business owners. Business inheritance is critical to ensuring that the business can be managed by the next generation and family members can benefit from the earnings and revenues. Therefore, preliminary planning must be done while the business owner is still alive by selecting the appropriate business inheritance mechanism for Muslims in Malaysia. The mechanisms of business inheritance, notably faraid, hibah, amanah, and hibah amanah will be examined in this paper from both a civil and Islamic perspective. By reviewing written journals and previous research, this research utilizes the library method. According to this study, business succession can be carried out by naming a beneficiary as a partner in the company or by completing the ownership transfer process while the owner is still living. In the other situation, it can be done by anyone among the heirs agreeing to re-register the business as usual. Meanwhile, there are four main instruments in Islamic law that can be used: faraid, hibah, amanah, and commercial hibah. According to this study, each instrument has a different impact on business succession. Entrepreneurs should use these instruments in their firm succession planning.

Item Type:Article
Uncontrolled Keywords:business inheritance, sole proprietorship business, hibah
Subjects:H Social Sciences > H Social Sciences (General)
Divisions:Islamic Civilisation
ID Code:102907
Deposited By: Narimah Nawil
Deposited On:26 Sep 2023 06:21
Last Modified:26 Sep 2023 06:21

Repository Staff Only: item control page