The Role and Responsibilities of Shari'ah Boards in the context of Islamic Finance and their position in Law

This study seeks to investigate the role of Shari’ah boards in the context of Islamic finance and defines their legal position in law. It explains ambiguity over the concept of Shari’ah and its implications for the responsibilities of Shari’ah boards in the context of Islamic finance. In this regard, it investigates the history of Islamic law to explain the crucial role of Shari’ah jurists in the interpretation and implementation of Shari’ah principles in terms of legitimacy-making for commercial transactions. Shari’ah supervisory board as the second layer of governance bears a trust-like relationship with the Islamic financial institution and investors. This thesis establishes a fiduciary place for Shari’ah boards to explain their responsibilities according to common law and statute. It endeavours to explain the implications of value-creation and the success of the company for Shari’ah boards’ fiduciary duties.