Does Shariah-compliant corporate governance add an extra overlay to the process?
I take the view that the same corporate governance principles that are applicable to non-Shari’ah-compliant financial institutions also apply to Shari’ah-compliant financial institutions. The principles that you want in terms of the functioning of the board, the competence of directors, non-executive independent directors, separation of the role of Chairman from Chief Executive, transparency and disclosure in terms of accounts, having an audit committee which has non-executive members and having risk management committees, all apply just as much to Shari’ah-compliant financial institutions as non-Shari’ah-compliant financial institutions.
