PRIORITY SHARES IN ISLAM

Abstract

The formation of preference shares involves musharakah contracts or companies in Islam. However, preference shares have different specifications with ordinary shares. This distinction of specification prevents the law of preference shares to accept disputes between Muslim scholars both locally and globally. Hence, the objective of this study is to study the preference of the preference shares in Islam. The content analysis method was chosen as the design of this study. The data in this study is qualitative data collected through document analysis. While analyzing data is done by using descriptive approach. The findings conclude that the concept of preference shares is appropriate for adoption but requires modification in the structure of the contract.