1. Shari’ah Paradigm of Corporate Legal Counsel in Relation to the Advancement of e-Commerce in the Wake of Globalization Prof. Dr. Mohd. Ma’sum Billah www.drmasumbillah.blogspot.com Safir 2, Ballroom (BR) Level HOTEL ISTANA Kuala Lumpur ASLI CORPORATE LEGAL COUNSEL CONFERENCE - 2012 “Meeting the new challenges of your role as a corporate legal counsel”

2. Key Issues Shari’ah paradigm in a nutshell Basic practical components of e-commerce Shari’ah standard governing e-commerce Shari’ah directions to e-commerce reality Shari’ah warnings against harmful activities & services in e-Commerce The role of corporate legal counsel towards an effectiveness of e-commerce under Shari’ah The world view as to Shari’ah standard of e-Commerce Challenges & the way forward in the wake of e-advancement Readings on Islamic e-Commerce (for the Corporate legal counsel)

3. Shari’ah Paradigm in a Nutshell Based on Divine Principles Applicability shall depend on the total compliance with the holy Qur’an, Sunnah & other sources of Islamic Law Applicability shall depend on the total compliance with the holy Qur’an, Sunnah & other sources of Islamic Law In case of unresolving dispute or issue, shall be referred back to the Divine rulings (al-Qur’ah 4:59) In case of unresolving dispute or issue, shall be referred back to the Divine rulings (al-Qur’ah 4:59) Though Shari’ah standard along with its all aspects are required to be led by Muslim, but non-Muslim are not barred from facilitating its implementation within the holistic universal spirit of mutual cooperation & solidarity (see al-Qur’an 5:2) Though Shari’ah standard along with its all aspects are required to be led by Muslim, but non-Muslim are not barred from facilitating its implementation within the holistic universal spirit of mutual cooperation & solidarity (see al-Qur’an 5:2) An integrated package with faith, God fear, wisdom, ethics, sincerity, justice, humanity & accountability An integrated package with faith, God fear, wisdom, ethics, sincerity, justice, humanity & accountability

4. Basic Practical Components of e-Commerce Online Financial Services e-Trade e-Advertising Data Protection Law & Enforcement

5. Shari’ah Standard Governing e-Commerce Universal Declaration ‘ No Gain by Misappropriation or Unjust Interference over the Right of others’: المسلم أخو المسلم: لا يخونه ولا يكذبه ولا يخذله ، كل المسلم على المسلم حرام: عرضه وماله،ودمه “… It is prohibited for every Muslim to interfere in the dignity, property, or blood of other”. (Hujjatul Wida’ Declaration) Freedom of Borderless Activities (e-Commerce): يريد الله بكم اليسرى ولا يريد بكم العسر “ Allah (swt) intends every facility for you while He does not expect any complex amongst you”. (al-Qur’an 2: 185) Limitation as to Universal Public Interest: تأمرون بالمعروف وتنهون عن المنكر “ … enjoining what is right (beneficial), while forbidding what is wrong (non-beneficial). (al-Qur’an 3:110) Freedom of Contracts as to e-Commerce Activities: يا أيها الذين أمنوا أوفوا بالعقود “ O’ you who believe! Fulfill your obligations”. (al-Qur’ah 5:1) Divine Warning against Unjust enrichment while Ruling out Commercial Directives: يا أيها الذين امنوا لا تأكلوا أمواكم بينكم با لبا طل الا أن تكون تجارة عن تراض منكم “O’ you who believe! Eat not up your property amongst yourselves in vanities, but let amongst you trade & traffic by mutual good will” ( al-Qur’an 4:29 )

6. Shari’ah Directions to e-Commerce Reality Text Among the prime objectives (Maqasid) of Shari’ah is to serve the humanity (Ummah) within the legitimate (Halal) rights in view of enabling all mankind enjoying peace, progress & prosperity by maximizing the opportunities that are available in the advance tech-reality. e-Commerce is among the contemporary opportunity, which is conceptually justified by the broad principles of the Shari’ah doctrine of Masaleh al-Mursalah (universal public interest) for the benefit of all by waiving the issue of one’s religion, race, nationality, gender, status, color or personality. Such universal opportunity with e-Commerce is further limited (inter alia) by legality (Halal), ethical justification, just treatment with fair gain & public interest. Continued…….

7. Continued……. Text Rights (al-Huqūq) Obligation (al-Wajib) Dignity (al-'Izzat, al-Ikrăm wa al-Hurmat) Trust (al-Amānat) Protection (al-Salāmat) Freedom (al-Hurriyah) Authorization (al- Mufawwadh) Contract (al-‘Aqd) Secrecy (al- Sirr) Disclosure (al- Itlau’) No Destruction (al-Ithăf) No Misappropriation (al- Gasab) No Violation as to Law, Morality or Legitimate Culture Offences (al-Jenăyah) Judgment (al-Hukm) Penalty (al-’Aqeebah) Damages (al-Darăr) Mitigation / Arbitration (al-Tahkeem) Waiver / Forgiveness (‘Afwun) Legal Directives

8. Continued……. Text God Consciousness (al-Taqwa) Putting Trust on Allah (swt) (al- Tawakkul) Cooperation (al-Ta’awun) Honesty / Truthfulness (al- Sidqu) Equality (al-Musawata) Equity (Adalatum Mutllaqatu) Justice (al-‘Adalah) Ethical Directives Respect (al-Ejjat) Sacrifice ( al-Tadhhiyah) Disclosure ( al- Itlau’) Allowing with Freedom of Selection (al-Hurriyyah) Trustworthiness (al-Amanah) Caring & Sharing (al-dimmah wa al Ishtirak) Concern on Legality (al-Halalu) Mutual Consent (al-Redha)

9. Illegality (Haram) Immorality (Ma’siyat) Transgression Trespass Violation as to law, ethics & nature Oppression & Suppression Shari’ah Warnings Against Harmful Activities & Services in e-Commerce GENERALSPECIFIC Terrorism Money Laundering Black Hat Hackings Obscenity Fake, Falsehood & Deceive Misappropriation Misrepresentation Duress Undue Influence Insider trading Cornering Nuisance Harassment Libel & Defamation among others

10. The Role of Corporate Legal Counsel Towards an Effectiveness of e-Commerce under Shari’ah STEP 1 STEP 2 STEP 3 Specialized Research & Solutions (Shari’ah & Empirical) Specialized Research & Solutions (Shari’ah & Empirical) Specialized Advisory & Counseling Services Specialized Advisory & Counseling Services Handling Cases with Appropriate Results Handling Cases with Appropriate Results

11. The World View as to Shari’ah Standard of e-Commerce It is universal in nature, which aims at benefiting all mankind by its holistic products & services Harmonization or compliance of modern e-commerce with Shari’ah standard is encouraged for its globalization It may be able to contribute to the advancement of e-Commerce globally with its reality outreach For the rightful achievement of the goal, the Shari’ah standard, law & ethics shall truly be respected

12. Challenges & the Way Forward in the Wake of e-Advancement CHALLEGES WAY FORWARD Lack of R & D Insufficient Regulatory Frameworks / Legislations Lack of Experts in Shari’ah e-Commerce Confusion among the Corporate Legal Counsels Poor Data on Precedents Unreasonable Dispute among the ‘Ulema’ Confusion in / rejection by many Muslims Lack of public awareness. Lack of R & D Insufficient Regulatory Frameworks / Legislations Lack of Experts in Shari’ah e-Commerce Confusion among the Corporate Legal Counsels Poor Data on Precedents Unreasonable Dispute among the ‘Ulema’ Confusion in / rejection by many Muslims Lack of public awareness. Enrichment of R & D along with HCD OIC countries shall initiate in developing relevant legislations Shari’ah Corporate Counsels shall be produced to meet the need Specialized Shari’ah Courts shall be established to treat corporate cases “ World Shari’ah corporate counsel forum” needs to be established. Enrichment of R & D along with HCD OIC countries shall initiate in developing relevant legislations Shari’ah Corporate Counsels shall be produced to meet the need Specialized Shari’ah Courts shall be established to treat corporate cases “ World Shari’ah corporate counsel forum” needs to be established.

13. Books on ‘Islamic e-Commerce’ (for Corporate Legal Counsel)

14. Thank You Wassalam 14