Upon demise of a shareholder, the shares he/she owns formed as part of his/her estates. This means that all rightful heirs according to the faraid law is entitled to claim their portion on the shares. The situation in most instances will not be favourable for the sustainability of the business as rightful heirs may not have the necessary knowledge and experience to act as a shareholder or director to the company. The shares will also be diluted as there will be a number of rightful heirs successing the shares of the demise shareholder. There will also be probability of disputes among the heirs. These challenges are potentially harmful and may jeopardize the company operations and sustainability.
Wasiyyah Shoppe Berhad introduces AT TIJARAH, a hybrid business succession solution that combines the Shariah and Civil law together to overcome all the obstacles.
BENEFITS OF AT TIJARAH ARE :
Successor of shares
The shareholder can now decide who will success his/her shares after his/her demise. The successor can be any of the heirs or a non-heir third party whom the shareholders believes has the capability to act as a shareholder / director or leader of the company. The shares will be excluded from estates and will not be distributed to the the heirs according to faraid law.
Leader for the business
The shareholders of the company can decide now who will become the future leader for the company in the demise / resignation of any shareholders / directors. The strategy will eliminate any ambiguity among all stakeholders pertaining the strategic direction of the company.
Corporate governance and limit of authority
The shareholders through their appointed directors can determine the standard of corporate governance and limit of authority to be adopted by the current or future directors / leaders of the company. The arrangement will ensure the company operates efficiently according to the existing law and continue to benefits all heirs.
The shareholders through their appointed directors can determine who will be responsible to sign the company’s cheque or authorize the company’s payment or any financial related matters after the demise of any current shareholders. The limit of authority in terms of amount or power of the cheque signatory or authorizer can also be set.
Benefits for heirs / specific donee
Via At Tijarah, the shareholders can make arrangement that the future dividends / payout / proceeds received by his/her successor will also be enjoyed by his / her heirs or any specific donee determine by the current shareholder. While it is always advisable for the shares to be successed only to a limited number of individual/individuals for the reason of ease of management, the benefits can still be enjoyed by a group of determined individuals. Charity organization can also be included as donee.