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.
Corporate Body, Juristic Person, Limited Liability, Waqf, Bayt al-māl, Joint Stocks, Trust, Islamic Jurisprudence.
Vol 6 Issue 1 (December-2016)