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http://dx.doi.org/10.13106/jafeb.2022.vol9.no3.0285

Sole Proprietorship Business Succession in Malaysia: A Perspective of Civil and Islamic Law  

HAMDAN, Afifah (Academy of Islamic Civilisation, Faculty of Social Sciences and Humanities, Universiti Teknologi Malaysia)
NOR MUHAMAD, Nasrul Hisyam (Academy of Islamic Civilisation, Faculty of Social Sciences and Humanities, Universiti Teknologi Malaysia)
KAMARUDIN, Mohd Khairy (Academy of Islamic Civilisation, Faculty of Social Sciences and Humanities, Universiti Teknologi Malaysia)
SAMAT@DARAWI, Abdul Basit (Academy of Islamic Civilisation, Faculty of Social Sciences and Humanities, Universiti Teknologi Malaysia)
AB RAHIM, Nik Mohd Zaim (Academy of Islamic Civilisation, Faculty of Social Sciences and Humanities, Universiti Teknologi Malaysia)
MOHAMAD NORZILAN, Nur Izzati (Academy of Islamic Civilisation, Faculty of Social Sciences and Humanities, Universiti Teknologi Malaysia)
Publication Information
The Journal of Asian Finance, Economics and Business / v.9, no.3, 2022 , pp. 285-293 More about this Journal
Abstract
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.
Keywords
Business Inheritance; Sole Proprietorship Business; Hibah; Amanah;
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Times Cited By KSCI : 2  (Citation Analysis)
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