Corporate Governance In Islamic Financial Institutions

Sound corporate governance is important as it ensures that IFIs are operating within the principles of the Sharī‛ah in its overall activities and that it is performing its role in disclosing profits motivated by the need to maximize the interest of shareholders. The main objective of this article is to discuss the elements of corporate governance and to build a framework that conceptualises corporate governance from the Sharī‛ah perspective. The research has combined the descriptive and analytical methods. The study shows that the model of corporate governance within the premise of the Islamic economic system leans towards being stakeholders-centred as the governance structure in Islam safeguards all rights and interests of all stakeholders and shareholders.