Payment for Shares: A Comparison Between Shariah and the Malaysian Companies Act 1965

In the traditional musharakah and/or mudharabah arrangement as well as the conventional company law rules, there are rules specified for the types of capital that may be used in the business. This article compares the respective rules relating to payment for the shares under the Sharlah and under the Companies Act 19651 to determine the compatibility or otherwise of the statutory provisions under the Companies Act 1965 with Sharlah. The issues identified in this article are also considered in the context of the development and reforms in other common law jurisdictions