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Analysis of Profit Sharing and SalaryPayment in the Business Entity Model (An Analysis from MaqashidShariah)
Luluk M Ifada*, and Bedjo Santoso*
*Lecturer at Faculty of Economics Islamic University Sultan Agung Semarang Abstract
Only a few studies concern on analyzing the different concept of profit sharing in PT (Limited Company) using Syirkah concept especially based on maqashidsyariah point of view. Dividend is considered as a realization of sharing profit acquired by enterprises during one accounting period, where all profit will be given to the owner (shareholders), while their organizer receive salary where the salary includes one of production factors and cost components in determining cost of produced goods. The Syirkah concept prioritizes justice aspect more in distributing income, where organizers (Mudhorib/
Musyarik) and shareholders (ShahibulMaal) acquire proportional profit sharing based on their dedicated contribution. Therefore, it will lead to economic gap due to unequal profit distribution. This study aims at studying those two aspects above by employing maqashidsyariah approach. This study explains in a descriptive and qualitative content analysis of the object matter. The data used in this study are primary data and secondary data obtained from the results of observations and data retrieved from literature, journals, and information relating to Islamic capital market system. Data collection techniques used were interviews, observation, and then it was conducted a critical analysis of the implementation of profit sharing and dividend from maqashidsyariah view. The findings showed that the application of Syirkah concept serve more maslahah (kindness) and in line with Maqashid Shariah view, while the concept of dividend contradicts with justice principle and does not endorse to MaqashidShariah. Moreover, the Syirkah model offers some benefits in society, collaboration, unity, and strengthens national economy
Keywords: Dividend, Syirkah, Justice, welfare, maqashid syariah
2 Introduction
In the modern business known as a Company Ltd. (PT) in which there are commissioners, directors and shareholders. Directors on the one hand, the worker's salary corresponded to the principle of professionalism. While the shareholder will get a share in the form of dividend. of the Ddividend is a form of ddisbursement business as a result of profits earned by the company during the accounting period.
In the concept of Company Ltd. all profits will be given to shareholders. While managers only get results through payroll costs has been provided and is considered as a production factor in the calculation of the cost of production. Thus the composition of the income earned by the managers are not comparable with the level of profit earned by the owners of capital.
In addition, the concept of Islam known qirad and shirkah. Qirad is to contract the two parties are to bear one another, either as a provider of capital being the other as a manager if a profit will be divided according to the proportion agreed in front of for example 40:60. While syirkah parties who are involved can be more than two parties. Shirkah and qiradis a partnership in order to gain an advantage.
Shirkah more advanced aspects of fairness in income distribution, where the manager is regarded as mudhorib / musyarik and will receive profit sharing proportional. Whereas in the system of profit sharing in the limited liability privileges the owners of capital, thus there is injustice in income distribution and inequality occur distribution incomes in the economy.
The research gap is explored in this study that is attempt to elaborate more detail of the prior finding. Research that analyzes differences profit sharing concept models of the Company Ltd.
with the Shirkah concept not been done, only Murtiyani (2015) stated that the distribution of profits in the Company Ltd. less favorably than shirkah concept. Hence, this study to analyze from sharia maqashid point of view.
Objective and Method
This study aims to assess the distribution of profit Company Ltd. with qirad and shirkah system with sharia maqashid approach. In this research eexplains in a descriptive and qualitative content analysis of the object matter. The data is used in this study are primary and secondary data is obtained from the results of observations and data retrieval literature, journals, and information relating to Islamic capital market system. Data collection techniques used were interviews, observation, and then perform a critical analysis of the implementation of profit sharing and dividend from maqashid sharia view.
Differences in the Company's Profit Sharing Syirkah / Mudharabah
The development of Islamic capital market in Indonesia grew rapidly and the various transactions have been carried out by the owners of capital with a mechanism that has been provided. Islamic Capital Market is a means for capital owners to conduct transactions with the manager of the company. Islamic Capital Market based on major transactions, namely financing based on inclusion (equity financing) and debt (debt financing) by applying the principles of sharia in their applications.
Funding is based on this inclusion in transactions involving the owners of capital (shahibul maal) and corporate issuers as a fund manager (musyarik), however, in its
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application the company as a manager of an entity form Company Ltd. (PT), which consists of the owners of capital who form the Board of Commissioners for the next Board of Commissioners appoint the Board of Directors and its staff as employees appointed to carry out the company's operations and rewarded (Ujroh) on responsibilities as an employee.In this case the mechanism of transactions there are several parties involved are first-party owners of major capital which was originally set up the company in the form of a Company Ltd. (PT), the second is the Board of Commissioners that personnel are a large part of the owners of capital, the third is the Board of Directors and staff who run the company's operations, the fourth is the owners of capital (third party) who purchased shares in the Islamic capital Market.
This mechanism then raises the question, if there is agreement between the Board of Commissioners transactions with the Board of Directors along with the staff who run their business? With the transaction agreement is executed? with whom the owners of capital (third party) is doing a partnership agreement? What transaction executed between the parties involved in it? How does the mechanism of transactions in Islamic Capital Market? Series of questions it presented itself as the Islamic capital market mechanism has been formed since the beginning of the transaction in the capital market through Bapepam (Capital Market Supervisory Agency).
Based on the existing Capital Market mechanisms will impact on other transaction mechanisms in the Islamic capital market, namely the mechanism transactins based on equity (equity financing) is stock and derivatives transactions and mechanisms based on the debt (debt financing) is Sukuk. These transactions are also growing rapidly without considering other transactions that are already running,so that aspect of adherence to the principles of sharia tend to be dubious and have not been applied in full in transactions in the Islamic Capital Market.Based on examination of the mechanism of Islamic Capital Markets this study was to clarify the system of Islamic Capital Market that should be implemented in the Islamic Capital Market, so that it will establish a mechanism of transactions in accordance with Islamic principles and leads to blessing the transactions carried out by the owners of capital nor the parties manager of the company.
From the above explanation needs to be studied more broadly, how to assess the need to go back and do the analysis to give an explanation of the error and impact of errors in the mechanism and the Islamic Capital Market System in Indonesia. Therefore the aim of this study is to analyze the application of Islamic Capital Market System, critique and recommendations necessary to make a fundamental change in the application of sharia Capital Market System. In this study, based on Islamic economic system madzhab of Hamfara "Hadza min Fadli Rabbi".
The method used is the inductive method in attracting Islamic rules is to understand the facts (fahmulwaqi ') problems that occur in the community, then do an understanding of the texts (fahmunnushus) how the problems in the community against the application Systems Capital Markets Islam and the impact of the transaction in Islamic Capital Market. Furthermore, the withdrawal of the law (istinbathulAhkam) is the process of drawing conclusions shariah law on the status of human actions to be judged in the application of Islamic Capital Market System in Indonesia. Are legal syariah status withdrawal required, Sunnah, permissible, makruh or haram.
4 Concept of Company Ltd.
The concept of Company Ltd. (PT) applied in Indonesia for companies listing on the Stock Exchange are government regulations that have been set. Starting from the concept of Company Ltd. is: This is the Islamic rules relating to limited liability system in terms of assigning responsibility is limited to the company.
1. As to the Company Ltd. itself, in fact he has violated Islamic law concerning companies (syarikah). This is because of the Company Ltd. has a definition: "Akad (transactions) between two or more people where they are bound to take part in a business activity (business) in a way to include a number of funds, with the aim of sharing the results of those activities, either in the form of profit and losses. "
2. The fact the company is violating the fact the company (syarikah) in Islam, because Islam is the definition of the company: "Agreement between two or more parties, who agree to pursue a business activity (business) with the purpose of gaining profit.
3. Companies in Islam is a contract between two or more parties, so it is not valid if done unilaterally. So there must be agreement between the two sides. In this case the contract shall be intended to carry out a business activity with the aim of earning a profit, so it is not valid if the contract is intended only for depositing the capital alone. Similarly, when the objective is not justified merely contributing to become a partner, because doing business is a principle of agreement the company in Islam.
4. Because this is an abomination usury, Allah characterize eaters / taker of usury as those possessed by devils because of the pressure of insanity. Allah says “Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity. That is because they say, "Trade is [just] like interest." But Allah has permitted trade and has forbidden interest. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah, SWT . But whoever returns to [dealing in interest or usury] - those are the companions of the Fire; they will abide eternally therein.” (QS.Al-Baqarah:275)
And because of the enormity of this is the prohibition of riba, then Allah declares war against usury eaters. Allah says:
“O you who have believed, fear Allah and give up what remains [due to you] of interest, if you should be believers.And if you do not, then be informed of a war [against you]
from Allah and His Messenger. But if you repent, you may have your principal - [thus]
you do no wrong, nor are you wronged” (QS. Al-Baqarah 278-279)
Taqiyuddin an-Nabhani (2004), Yusuf as-Sabatin (Ibid., P. 109) and Ali as-Salus Mawsûah al-Qadhaya al-fiqhiyah al-Muâshirah, hlm.465). All three are equally highlighted the business entity form Company Ltd. (PT) is actually un-Islamic. Thus, before seeing the company's line of business, which should be seen first is a form of business entity, whether it qualifies as an Islamic company (shirkah Islamiyah) or not.
Different from the application of the Capital Market Islam (Islamic Capital Market) where there has been a process of screening (Screening) of the products offered when it will be listing on the stock exchange, that only companies with products that are halal
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and either be listing on the stock exchange , In the National Sharia Board fatwa No: 40 / DSN-MUI / X / 2003, Article 3 Criteria for Public Listed Company include: type of business, goods, services provided and contract as well as how the company's management of Public Company that issued the securities Sharia may conflict with Sharia principles. Types of business activities that are contrary to Sharia principles as referred to in Article 3 point 1 above, among others:
a. Gambling and games are classified as gambling or trading prohibited;
b. conventional financial institutions (usury), including conventional banking and insurance;
c. Manufacturers, distributors and vendors of food and beverages are forbidden; and d. Manufacturers, distributors, and / or provider of goods or services that damage
morale and harmful.
Investing in issuers (companies) that when the transaction level (ratio) of corporate debt to ribawi financial institutions more dominant than the capital. Companies engaged in the production of liquor, pork and any business associated with pigs; conventional financial services such as banks and insurance; the entertainment industry, such as casinos, gambling, prostitution, pornographic media; etc. Proposition, which forbids the sale of shares of companies like these are all arguments which forbids any such activity.
However, if the shares are traded in the capital market that is of companies engaged in legitimate business (for example in the areas of transport, telecommunications, textile production, and so on). Once argued that, planting stock in a company like this is allowed by sharia and arguments who show skill are all arguments that show the permissibility of such activities. From the above, there are two things that need to be analyzed further, namely: 1) related to the concept of Company Ltd. (PT), which does not yet reflect the concept syirkah in accordance with the Islamic sharia. 2) relating to the transaction mechanism of capital market products (Stocks, Bonds, Mutual Funds Sharia) is applied in the Islamic capital market in Indonesia.
Discussion and Analysis
From the opinions of the scholars regarding the business entity form Company Ltd.
(PT) is not in accordance with the Islamic sharia. From the definition Company Ltd. is a contract (transaction) between two or more people where they are bound to take part in a business activity (business) in a way to include a number of funds, with the aim of sharing the results of those activities, either in the form of profit and loss. But in reality that Company Ltd. enterprise is a capital collection of people who are interested in these enterprises, which in turn the owners of capital have raised the Board of Commissioners and the Board of Directors along with staff who will carry out the operations. In this case the Board of Directors of an employee who was appointed and given salary (Ujroh) according to the level position. Not as a business partner who did shirkah effort and expertise it has.
The Board of Directors responsible for running the company with a profit-oriented.
Because the Board of Directors granted the salary payroll costs charged to the cost of group, which reduces revenues. So the revenue minus the cost it will obtain a net profit.
In the concept of PT net income into the rights of the owners of capital in the form of
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dividends are distributed according to the proportion of capital that is submitted. While the shirkah concept, net income distributed to the managers and owners of capital in accordance with the composition of the contribution of each party do shirkah. Thus there is an imbalance in the distribution of income in the managers and owners of capital.
In the aspect of accounting capitalists showed that in human resource management showed systemic injustice rooted in cost structure of Company's financial statements, where the workforce is backbone of success of a company does not earn decent salaries compared with the level of profits derived by capital owners. The cost of labor is very cheap in particular is a systemic form of slavery on a massive investment of the capitalists. Methods of privatization with the acquisition of capital to firms in the form PT (Company Ltd.) will be able to control the resources that exist, both natural resources, human resources and other sources.
The owners of the assets will be free access funds in the bank because it has collateral that can be collateral, then the fund is invested in stocks of companies in the form of a Company Ltd., then in the end they will get the best return on the investment. While workers will forever remain a worker because of the ability does not develop, and do not have the capital to be able to build a company, or just buying the stock had its share in capital ownership in the company. Many cases Boards of Directors often double as owners of capital, it is because they are the majority owners of capital and can exercise control over the operations of the company. In this case they receive a salary and also acquire the distribution of dividends to the distribution, because they doubled as an employee as well as capital owners.
Dividend is a form disbursement of business as a result of profits earned by the company during the accounting period. And all profits will be given to the investors (shareholders). While the manager has obtained the results through payroll costs and payroll costs have been given salary is one of the production factors in production costcalculationof goods produced. The concept of using the capitalist principle of "costs of production factors to the lowest possibleprices to gain maximum profit." Thus the composition of income earned by employees (managers) are not comparable with the level of income (profit) obtained by the capitalowners. Unequal income distribution is reflects the hegemony of the capitalist system. Therefore, it would result in economic inequality because income distribution imbalance.
In the Islamic economic concept of production factors is a determinant of the cost of production, in determining the production costs and operating company based on the concept of efficiency and effectiveness. Labor used is also entitled to obtain income that is capable of providing welfare for employees. But the more important that Islamic economic concept is more fairness advanced aspects in income distribution, where the manager (mudhorib / musyarik) and investors (shahibulmaal) earn a share in proportion to their contributions, which are based on agreements that have been discussed and determined before starting a business, namely by determining the profit-sharing ratio in proportion to their contributions. From here the manager and the owners of capital gain income distribution in proportion to the contribution of each party.
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Thus the Islamic capital market concept is developed today is necessary fundamental change in the system of agreements in a Company Ltd. (PT), mechanisms and procedures of cooperation for the results, the mechanism of buying and selling shares in companies that tend to controlled by the capital owners, determination mechanism salary costs, operating costs and the pricing stock if capital transferred to another party.
The capital transfer by selling shares to other parties in an unspecified time is an violation act of Islamic rules ", because Islamic economics concept equity participation agreement existing agreements regarding the investment period, the profit sharing ratio and the capital total to be transferred. In the case of conventional capital market there is no agreement on the term of the investment and revenue sharing business, because it causes the action of buying and selling shares in accordance with the wishes of the owners of the funds through brokers in order to obtain the difference between purchase price and shares selling price. This is called the speculation act, because there is no clear investment term, and the profit sharing ratio between the management companies to the owners of capital.
The Maslahah of Profit Sharing Compare to Salary in the Business Model
On the Sharing System, which is profits divided according to proportion that will reflect justice, the division is based on the profits. Besides, the manager will work more motivated to earn more profits. In the system for the results will enable the development of the blossoming value of religious while in the wage system of growing niche to exploitative, as the businessman usually unprincipled, "Keep your costs to a minimum and benefit as much as possible." As a result, the employee must receive wages or salaries corresponding.
Aplication of the system for the results not only for Islamic financial institutions, but in the system of remuneration of employees was more than fair. Thus, the relationship Among boss and the employees very closed, both are struggling.
On the distribution of profits sharing, the relationship between the owners of capital to be better because the manager felt owns and is responsible for such activity. So it can extend in the form of fraternal cooperation. Unlike the payroll system, where the manager as executor paid in accordance with the initial agreement regardless of the level of benefits. So that aspect of justice cannot be achieved.
In addition, the owners of capital relationship with the manager limited to the employee and employer relationship is not partnership. In the system of salary workers less motivated to improve corporate profits because regardless of profit salary is fixed.
Usually to increase the motivation to use approaches that are dummy.
By implementing a system for the results, it can erode the capitalist economic system oriented to profit alone, while the system for the results encourage the development of Islamic economy based on cooperation and brotherhood.
Regarding the relation bosses - workers, there is a Hadith "Who has the employed worker or employee, he should find a wife for him, servant for them, and provide a home to them. Who takes the attitude other than that, it was an unheard or a thief "(HR.
Abu Dawud)" Hence it is very difficult, to fulfill Reviews These requirements.
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Profit Sharing Compare to Salary in the Business Model ( a Maqashid Al- Shari’ahView)
The main objective in Islam is to protect the right in all aspect of every individual or it is known as maqashid al-shari‟ah or the objective of Islam. Dusuki and Abozaid (2007) stated that the concept of maqashid al-sharia reflects the comprehensive view of Islam.
Islam integrates code of life and its goal encompasses to the whole life, individual and society; in this world and the hereafter. Thus, it has to be understood as a whole picture of Islam (in Dusuki, 2009). Maqashid al-shari‟ah concept proposed by Imam Al- Ghazali in 1111.Al-Ghazali stated that the maqashid al-shari‟ah is to promote welfare of the ummah (Meera and Larbani, 2009 and Jauhar, 2009). Al-Ghazali, the clarified into five elemets; (i) Safeguarding of life, (ii) sovereignty, (iii) Safeguarding of faith , (iv) Safeguarding of intellect , and (v) Safeguarding of wealth.
Concerning to concept of usury (riba) in the recent monetary system might not be segregated. There are two group of proponents:
1. Once group argued that it is impossible to eliminate the interest rate element from the economics sciences, including finance study. In this case, Kayadibi (2011) delineated that the pro-riba groups believed that riba is the fundamental of global economic system due to it compensates a person‟s consumption today for some potential benefit in the future. Rationally, interest indeed has to be existed in the economy.
2. The second group is those who against this thought are judged as an irrational and undeveloped class. Many research proved that what is happening crisis today is triggered by the existence of interest rate in the monetary current system.
The supporter the second opinion, Meera and Larbani (2004) showed that loans are non- repayable in aggregate due to interest portion that must be paid back along with the principal. By the interest rate involvement in the economy, it is therefore, the objective of sharia (maqashid al-sharia) will not be achieved.
In addition, the purpose of Islamic law is to be a mercy for the worlds (Al-Anbiya: 107).
The targets of Islamic law:
1. Tazkiyatunnafs (purification of the soul) so that all Muslims as a source of good not badness for the environment (Al-Ankabut: 45). This can be reflected in the worship performed well. For example, prayers in congregation has the function of cleaning psyche of society, both individually and society, the pilgrimage to contain public order (at Tanzhim al ijtima'iy), zakat containing ta'awun (social solidarity) between the rich and the poor.
2. Qaimanbilqisth (justice) in Islamic societies (Al Maidah: 8). In this case it is fair in all fields including legal, judicial and testament. In Islam there are no classes of society, all have the same status in the sight of Allah.
3. Maslahah (benefit) in this case the law in Islam either refer to the Qur'an or hadith has benefits overall. Also related to the public interest for many people.
Basically, maqashid Syariah / Maslahah divided into five areas: preservation of religion, life, property, intellect and descent.
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1. Faith (Dīn) , in the presence of religion containing elements of humanity, man becomes higher degree than animals (Al Baqarah: 256).
2. Life (Nafs) (al nuhafazhah ala an nafs), including the right to maintain respectable, actions hurt others, dignity and prevent from doing qadzaf (accused of fornication) and others.
3. Maintaining Reason – Aql (al muhafazhah ala al aql), keeping the sense to refrain from actions that cause damage and no longer useful to others.
4. Maintain prosperity – Nasl (ala al muhafazhah a nasl), keeping the human lineage remains to be the best. In this case that parents educate their children to either not be vandal.
5. Maintain Property – maal (al muhafazhah ala al mal), so that assets owned by humans is used in accordance with the Islamic Shari'a. Not to do actions that harm others associated with the property.
Maqashid hariah (Benefit) in the top five in terms of who has the level of (dignity), namely:
1. Dignity dharuriyat (primary), it includes in all things, including people, in preserving limbs. Basically, avoid activities that result in not maintaining one of the five main things that are included in dharury (principle).
2. Dignity hajjiyat (secondary), is not intended to maintain the fifth one, but rather to eliminate masyaqat, narrowness or ihtiyath (beware) against five of these things.
3. Dignity tahsinat or kamaliyat (complementary), not in order to realize the five main things above or within the framework ijitiyath, but rather to maintain and protect it.
Basically in this case is not directly related to the specific object but rather on maintaining the integrity. Examples of issues related to female offspring are prohibited from using the jewelry out in the middle of the road (An Nur: 31).
While divided into three kinds, namely:
1. Maslahat are required by Allah Almighty for His servants. Divided into fadhil (main), afdhal (most important) and mutawassith (middle).
2. Maslahat who sunnahsyar'i to his servant for good 3. Maslahat mubah is not rewarding.
In Islam there are known as adhdharurah tubihu al mazhurat which means a state of emergency could lead to the permissibility grabbed prohibited items. In this case even required to do not violate the rights of others or may not include actions that the promised reward when faced with patience (Al-Baqarah: 173). Basically Allah did not create taklif that man alone cannot do it (Al-Hajj: 78). Prophet Muhammad explained that persecute yourself with worship is not required by Islam and heavy taklif impossible can be done continuously and sometimes even cannot afford to do. There are some basic law used in this case,
1. Adhdhararyuzalu, the danger that must be eliminated
2. Yudfa Asyadduadh-dhararyn, rejected more severe hazard by choosing lighter 3. Daf u adhdharar Muqaddamjalb ala al mashalih, avert danger interesting
precedence over welfare
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In conclusion, these 5 basic elements of maqashid shariah cannot be separated each other as it is a unity. If one of these 5 elements is harmed, it will affect another elements and the maqashid al-sharia will never be attained. Thus, the concept of maqashid al- sharia is a very crucial and it should be understood by any moslem, include the government, scholars, and academician . In this regard the renowned Muslim economist, M. Umer Chapra states: „The maqāsid al- Sharī’ahis everything that is needed to realize falahand hayattayyibah; and faith is the most important ingredient for human well-being. It puts human relations on a proper foundation, enabling human beings to interact with each other in a balanced and mutually caring manner to help ensure the well-being of all. It also provides a moral filter for allocation and distribution of resources in accordance with the dictates of brotherhood and socio-economic justice, and a motivating system that brings biting power to the goals of need-fulfillment and equitable distribution of income and wealth. Without injecting the dimension of faith into all human decisions, ….it may not be possible to realize efficiency and equity in the allocation and distribution of resources, to minimize macroeconomic imbalances and economic instability, or to overcome crime, strife, tensions and the different symptoms of anomie‟.
In maqashid shariah research is divided into three Dimensions: dharuriyyah, Hajiyah, and tahsiniyyah, while in terms of dharuriyyahis divided into (al-Ghazali):
1. Maintain faith ability; hifdzu al diini, guarantee the protection and safety of religion.
2. Maintain life / Mental Ability; hifdzu al nafsi, safeguards and physical safety of residents from physical acts outside the law.
3. Maintain Reason Ability; hifdzu al aqli, guarantee the protection and safety of intellectual development
4. Maintain prosperity ability; hifdzu al nasli, guarantee the protection and safety of the family and descendants.
5. Maintain property ability; hifdzu al maali, guarantee the protection and safety of property and property rights, in addition to that in this case added.
6. The ability to maintain the growth and justice in economic system ; the ability to realize the economic life of a fair and growth.
In this sub chapter will discuss the maqashi dshariah view on the both model; profit sharing and salary / commission system.
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Table.1: Maqashid Shariah Analysis Elements Profit Sharing Model in Business
(The workers as main human resources and partnership and responsibility)
Salary Payment in the Company Ltd.
(The workers as resources factor production that should minimal cost)
Maintain Life (Soul)
Able to realize a better life in the spirit of cooperation and good working
It is hard to realize a harmonious life, because the relationship by bosses - workers.
Maintain Reason – Intellect
Able to encourage mutual trust, optimistic and hard work.
The spirit of brotherhood less The stress of work, because their system of unfair wages, their employers against labor exploitation
Maintain Prosperity
Encourage the establishment of civilization Khaira Ummah prosperous generation
It is hard to realize a prosperous generation because less income
Maintain Property
Support the realization of the spirit of a progressive and growing because of increased work motivation. Because he is as the main resources in the businesses
Employees as a key in the business did not prosper because the work is based on fixed wages. He was treated as a factor of production cost
Maintain Justice and Growth
Supports the values of justice and encourage the growth of public welfare
This system is not fair, is dedicated to the owners of capital
Maintain Faith (Religion)
This point is a combination of the previous points, profit sharing model is able to develop religious life i.e. in terms of faith, because the five elements above are met
It is hard to create the life based on religion, faith and morality, because relationships are based material and exploitation
Limitations of Study
This study only uses the deductive method of analysis, the next further research is required a comprehensive approach, involving respondents scholars, academics and business people to give their opinions on the five points of maqashid shariah for both profit sharing models and salary conventional models.
Conclusions
Company Ltd. (PT) is not in accordance with the Islamic sharia. Company Ltd. is a contract (transaction) between two or more people where they are bound to take part in a business activity (business) in a way to include a number of funds, with the aim of sharing the results of those activities, either in the form of profit and loss. But in reality that Company Ltd. enterprise is a capital collection of people who are interested in these enterprises, which in turn the capital owners raised the Board of Commissioners and the Board of Directors along with staff who will carry out the operations. In this case the
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Board of Directors of an employee who was appointed and given salary (Ujroh) according to the level position. Not as a business partner who did shirkah energy and its expertise in Company Ltd. net profits to the right of the owners of capital in the form of dividends are distributed according to the proportion of capital that is submitted. While the concept shirkah, net income distributed to the managers and owners of capital in accordance with the composition of the contribution of each party do shirkah.
Thus there is an imbalance in the distribution of income in the managers and the owners of capital. Share purchase on the secondary market is the buying and selling of capital, in capital transaction agreement for a certain period, therefore share purchase in the capital at an unspecified time is a form of speculation and uncertainty in the capital itself. The ambiguities in these transactions are not permitted in Islamic economy because it creates ambiguity in the results, in management and in determining the Company's operating results.
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Third price winner of research proposal in Educational Colloquium of International Centre for Education in Islamic Finance (INCEIF), Kuala Lumpur Convention Centre (KLCC), Kuala Lumpur, Malaysia. 940
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Lumpur International Islamic Finance Expo 2006, International Centre for Research and Training (IRTI), Islamic Development Bank.
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