Analysis of Musharakah Ma’a al-Hibah in Preference Shares According to Sharia Perspective

Abstract

Wa'd bi al-tanazul practiced in preference shares today have problems in terms of implementation
as the object of the contract, namely the division of profits and losses in musharakah remained unclear at the
beginning of the contract. This concept has been used by the Shariah Advisory Council, the Securities
Commission of Malaysia in requiring non-cumulative preference shares. Non-cumulative preference shares
are preference shares in which the shareholding term of the investor remains and is equal to ordinary shares
unless the dividends are fixed and cannot be accumulated forward. Although the concept of wa'd bi al-tanazul
has been adopted by the Shariah Advisory Council, the Securities Commission of Malaysia, but it is still in
dispute because its practice at the beginning of the musharakah has led to the gharar element in the distribution
of profit and loss of shareholders. Hence, the objective of this study is to analyze the alternative of wa'd bi altanazul,
namely musharakah ma'a al-hibah in the practice of preference shares according to shariah
perspective. Content analysis method was chosen as the design of this study. Data in this study involves
qualitative data collected through documentation and semi-structured interview. Meanwhile, data analysis is
done by applying descriptive approach. The results of the study found that the tabarru’ entry of the contract
by using the medium of conditional hibah or hibah mu’allaqah can solve gharar issues for objects in the
musharakah contract. However, the application of the principle of hibah in the practice of preference shares
can only be a precondition for certain circumstances because not all issues of preference shares can be solved
by practicing musharakah ma'a al-hibah.