Foundations of Shari'ah Governance of Islamic Banks

Chapter 6Sharī'ah Supervisory Board Member Qualifications and Internal Regulations

Chapter Summary

The chapter uncovers key competence criteria of a qualified SSB member, the process of establishing an SSB, and the internal regulations that allow the SSB to operate effectively. Besides examining the character, academic qualifications, experience, and essential skills an SSB member should possess, the chapter explores the characteristics expected of this body of professionals. Systemized and non-systemized procedures for establishing SSBs are discussed including the methodology for nominating and appointing members. Additional regulations that govern the work of this entity through the SSB charter, such as the number of members required for forming an SSB, members' terms of agreement, reporting line, reappointment, and compensation are also addressed. Given that SSB members may resign or be dismissed, a procedure for these scenarios is presented along with a mechanism for replacing them. This is followed by a discussion on guidelines for conducting SSB meetings including their frequency, quorum, the decision-making process, and the documentation of minutes.

6.1 Competence of SSB Members

Competence is the aptitude of an individual to perform a certain task. In other words, it is the sum of the abilities, knowledge, skills, and proficiencies that enable a person, or a group of persons, to effectively perform duties and responsibilities. Collin observes, “Competence has different ...