The Shariah Breaches of Preference Shares

Definition of a Preference Share Preference shares are shares that rank above other share types and classes in terms of dividends or capital but have restricted voting rights. They are almost always fixed-income securities. The specifics of preference shares are usually set out in the company’s articles of association or shareholder agreements[1]. Key features of a preference […]
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Shariah Dynamics of SAFE Agreements

Summary: We believe that generic SAFE agreements have a level of Gharar (uncertainty) and ambiguity in terms of the treatment of the investment for Shariah compliance. A SAFE can be easily tweaked for Shariah compliance and should be tweaked to ensure Shariah compliance. The first major objection is ownership; a SAFE can potentially be developed […]
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