Shari’ah Paradigm of Corporate Legal Counsel in

Relation to the Advancement of e-Commerce in the Wake of

Globalization

Prof. Dr. Mohd. Ma’sum Billah www.drmasumbillah.blogspot.com

Safir 2, Ballroom (BR) Level HOTEL ISTANA

Kuala Lumpur

ASLI

CORPORATE LEGAL COUNSEL CONFERENCE - 2012CORPORATE LEGAL COUNSEL CONFERENCE - 2012““Meeting the new challenges of your role as a corporate legal counsel”Meeting the new challenges of your role as a corporate legal counsel”

CORPORATE LEGAL COUNSEL CONFERENCE - 2012CORPORATE LEGAL COUNSEL CONFERENCE - 2012““Meeting the new challenges of your role as a corporate legal counsel”Meeting the new challenges of your role as a corporate legal counsel”

Key Issues

• Shari’ah paradigm in a nutshell• Basic practical components of e-commerce• Shari’ah standard governing e-commerce• Shari’ah directions to e-commerce reality• Shari’ah warnings against harmful activities & services in e-Commerce • The role of corporate legal counsel towards an effectiveness

of e-commerce under Shari’ah• The world view as to Shari’ah standard of e-Commerce• Challenges & the way forward in the wake of e-advancement• Readings on Islamic e-Commerce (for the Corporate legal counsel)

Shari’ah Paradigm in a Nutshell

Based on Divine PrinciplesBased on Divine Principles

Applicability shall depend on the total compliance with the holy Qur’an, Sunnah & other sources of Islamic Law

Applicability shall depend on the total compliance with the holy Qur’an, Sunnah & other sources of Islamic Law

In case of unresolving dispute or issue, shall be referred back to the Divine rulings (al-Qur’ah 4:59)

In case of unresolving dispute or issue, shall be referred back to the Divine rulings (al-Qur’ah 4:59)

Though Shari’ah standard along with its all aspects are required to be led by Muslim, but non-Muslim

are not barred from facilitating its implementation within the holistic universal spirit of mutual cooperation & solidarity

(see al-Qur’an 5:2)

Though Shari’ah standard along with its all aspects are required to be led by Muslim, but non-Muslim

are not barred from facilitating its implementation within the holistic universal spirit of mutual cooperation & solidarity

(see al-Qur’an 5:2)

An integrated package with faith, God fear, wisdom, ethics, sincerity, justice, humanity & accountability

An integrated package with faith, God fear, wisdom, ethics, sincerity, justice, humanity & accountability

Basic Practical Components of e-Commerce

Online Financial Services

e-Trade e-Advertising

Data Protection Law & Enforcement

Shari’ah Standard Governing e-Commerce

• Universal Declaration ‘No Gain by Misappropriation or Unjust Interference over the Right of others’:

: : حرام المسلم على المسلم كل ، يخذله وال يكذبه وال يخونه ال المسلم أخو المسلموماله،ودمه عرضه

“… It is prohibited for every Muslim to interfere in the dignity, property, or blood of other”. (Hujjatul Wida’ Declaration)

• Freedom of Borderless Activities (e-Commerce):

العسر بكم يريد وال اليسرى بكم الله يريد“ Allah (swt) intends every facility for you while He does not expect any complex amongst you”. (al-Qur’an 2: 185)

• Limitation as to Universal Public Interest:

  المنكر عن وتنهون بالمعروف تأمرون “ … enjoining what is right (beneficial) , while forbidding what is wrong (non-beneficial). (al-Qur’an 3:110) • Freedom of Contracts as to e-Commerce Activities:

بالعقود أوفوا أمنوا الذين أيها يا “ O’ you who believe! Fulfill your obligations”. (al-Qur’ah 5:1) • Divine Warning against Unjust enrichment while Ruling out Commercial Directives:

  منكم تراض عن تجارة تكون أن اال طل لبا با بينكم أمواكم تأكلوا ال امنوا الذين أيها يا“O’ you who believe! Eat not up your property amongst yourselves in vanities, but let amongst you trade & traffic by mutual good will” (al-Qur’an 4:29)

Shari’ah Directions to e-Commerce Reality

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• Among the prime objectives (Maqasid) of Shari’ah is to serve the humanity (Ummah) within the legitimate (Halal) rights in view of enabling all mankind enjoying peace, progress & prosperity by maximizing the opportunities that are available in the advance tech-reality.

• e-Commerce is among the contemporary opportunity, which is conceptually justified by the broad principles of the Shari’ah doctrine of Masaleh al-Mursalah (universal public interest) for the benefit of all by waiving the issue of one’s religion, race, nationality, gender, status, color or personality. • Such universal opportunity with e-Commerce is further limited (inter alia) by legality (Halal), ethical justification, just treatment with fair gain & public interest. Continued…….

Continued…….

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• Rights (al-Huqūq)• Obligation (al-Wajib)• Dignity (al-'Izzat, al-Ikrăm wa al-Hurmat)• Trust (al-Amānat)• Protection (al-Salāmat)• Freedom (al-Hurriyah)• Authorization (al- Mufawwadh) • Contract (al-‘Aqd)• Secrecy (al- Sirr)• Disclosure (al- Itlau’)•

• No Destruction (al-Ithăf)• No Misappropriation (al- Gasab)• No Violation as to Law, Morality or Legitimate Culture• Offences (al-Jenăyah)• Judgment (al-Hukm)• Penalty (al-’Aqeebah)• Damages (al-Darăr) • Mitigation / Arbitration (al-Tahkeem)• Waiver / Forgiveness (‘Afwun)

Legal Directives

Continued…….

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• God Consciousness (al-Taqwa) • Putting Trust on Allah (swt) (al- Tawakkul)• Cooperation (al-Ta’awun)• Honesty / Truthfulness (al- Sidqu)• Equality (al-Musawata)• Equity (Adalatum Mutllaqatu) • Justice (al-‘Adalah)

Ethical Directives

• Respect (al-Ejjat)• Sacrifice ( al-Tadhhiyah)• Disclosure ( al- Itlau’)• Allowing with Freedom of Selection (al-Hurriyyah)• Trustworthiness (al-Amanah)• Caring & Sharing (al-dimmah wa al Ishtirak)• Concern on Legality (al-Halalu)• Mutual Consent (al-Redha)

• Illegality (Haram)

• Immorality (Ma’siyat)

• Transgression

• Trespass

• Violation as to law, ethics• & nature

• Oppression & Suppression

Shari’ah Warnings Against Harmful Activities & Services in e-Commerce GENERAL SPECIFIC

• Terrorism• Money Laundering• Black Hat Hackings• Obscenity• Fake, Falsehood & Deceive• Misappropriation• Misrepresentation• Duress• Undue Influence• Insider trading• Cornering• Nuisance • Harassment• Libel & Defamation

among others

The Role of Corporate Legal Counsel Towards an Effectiveness of e-Commerce under Shari’ah

STEP 1STEP 1 STEP 2STEP 2 STEP 3STEP 3

Specialized

Research &

Solutions(Shari’ah & Empirical)

Specialized

Research &

Solutions(Shari’ah & Empirical)

Specialized

Advisory &

Counseling Services

Specialized

Advisory &

Counseling Services

Handling

Cases with Appropriate

Results

Handling

Cases with Appropriate

Results

The World View as toShari’ah Standard of e-Commerce

It is universal in nature, which aims at benefiting all mankind by its holistic products & services

Harmonization or compliance of modern e-commerce with Shari’ah standard is encouraged for its globalization

It may be able to contribute to the advancement of e-Commerce globally with its reality outreach

For the rightful achievement of the goal, the Shari’ah standard, law & ethics shall truly be

respected

Challenges & the Way Forward in the Wake of e-Advancement

CHALLEGESCHALLEGES WAY FORWARDWAY FORWARD

•

• Lack of R & D• Insufficient Regulatory Frameworks / Legislations• Lack of Experts in Shari’ah e-Commerce• Confusion among the Corporate Legal Counsels• Poor Data on Precedents• Unreasonable Dispute among the ‘Ulema’• Confusion in / rejection by many Muslims • Lack of public awareness.

•

• Lack of R & D• Insufficient Regulatory Frameworks / Legislations• Lack of Experts in Shari’ah e-Commerce• Confusion among the Corporate Legal Counsels• Poor Data on Precedents• Unreasonable Dispute among the ‘Ulema’• Confusion in / rejection by many Muslims • Lack of public awareness.

• •

• Enrichment of R & D along with HCD• OIC countries shall initiate in developing relevant legislations• Shari’ah Corporate Counsels shall be produced to meet the need• Specialized Shari’ah Courts shall be established to treat corporate cases• “ World Shari’ah corporate counsel forum” needs to be established.

• •

• Enrichment of R & D along with HCD• OIC countries shall initiate in developing relevant legislations• Shari’ah Corporate Counsels shall be produced to meet the need• Specialized Shari’ah Courts shall be established to treat corporate cases• “ World Shari’ah corporate counsel forum” needs to be established.

Books on ‘Islamic e-Commerce’ (for Corporate Legal Counsel)

Thank You

Wassalam 14