Raising Your Voice in the Annual General Meetings (AGMs)

Are you a trader or investor in the Indian stock market? Do you follow Sharia-compliant rules when investing or trading?
https://darulifta-deoband.com/home/ur/shares-investments/23969

If not, please follow the sharia-compliant rules which are mentioned in the Deoband fatwa attached to this blog.

If you follow Sharia-compliant rules, then the question is whether you follow all the rules described in this fatwa.
Do you raise your voice in AGM against Non-Shari’a Income or Investment for your investee company?

If yes then very good your investment fulfils the Sharia-Compliant criteria.

If you are not raising your voice then you miss one very important point and your investment does not fulfil the Sharia Compliant.

As Muslim investors, we seek to align our financial actions with ethical values that resonate with our faith. The stock market, while providing investment opportunities, also presents a platform for shareholders to voice concerns and guide corporate actions in a manner that aligns with Islamic ethics. One of the best opportunities to make an impact is by actively participating in the Annual General Meetings (AGMs) of the companies in which we invest. This blog outlines a approach to raising our voices on issues like transparency, ethical operations, and financial compliance in AGMs.

The Importance of Responsible Investment

Engagement with companies as shareholders isn’t just about profit. As ethical investors, we are called to ensure that the businesses we support are operated responsibly, contribute to societal well-being, and comply with Shariah guidelines where possible. According to Deoband Fatawa, investments should avoid involvement in sectors or practices that violate Islamic principles, such as interest-based earnings, unethical business practices, and industries that contribute to harm in society.

Raising Voice in AGMs

1. Advocating for Transparency: During the AGM, raise questions about the transparency of the company’s operations and financial activities. Seek clarity on any issues related to income sources, particularly if there are concerns about involvement in non-Shariah compliant activities.
2. Pushing for Ethical and Social Responsibility: Use the AGM to encourage companies to adopt policies that promote ethical practices, environmental responsibility, and fair treatment of employees. As Deobandi followers, our concern for just and responsible operations reflects our values and reminds companies of their societal obligations.
3. Demanding Financial Compliance: One of the fundamental aspects of Islamic finance is avoiding interest-based earnings. Ask about the company’s strategies for minimizing interest-bearing debt and engaging in halal financial practices wherever feasible .
Conclusion
Our role as ethical shareholders, inspired by Deoband Fatwa & teachings, allows us to ensure that our investments serve a higher purpose beyond financial gain. By using our voice in AGMs, we can help foster a more transparent, ethical, and socially responsible business landscape. Each shareholder’s voice counts, and by aligning our values with our investments, we contribute meaningfully to a financial world that respects both prosperity and principle.

(See Below Sample Letter)

Subject: – Issue of interest-Bearing Debt or Non-Sharia Revenue of the Company
Respected Sir
Greetings I
I Myself Your Name HERE
PAN: Your PAN number HERE
I am glad to say that I am a Share Holder of your Company & would love to be a part of it for the future too as God (Our Creator) encouraged business because it benefits the mankind in parallel it is a kind of good deeds which earn the benefits in this world as a livelihood and the day after here as a Paradise for those who believe in God and follow his orders.
On the other side of business, God discourages the usury/interest bearing debt which is also almost businessmen and companies adopted that is causes the harm in our society let us see how.
There are many reasons why interest money is considered not permissible, the primary reason is it is exploitative. Because interest is based on exploitation. One must pay interest from day 1 whether he makes profit or loss. Risk is all for his. In Islam the investor shares both profit and loss and is justified in claiming part of the profit.
Interest does not really control the value of money; rather it manipulates its value. Higher interest rates make money harder to come by, shrinking the economy, whereas lower interest rates make money easier to come by, inflating the economy.
The reason is simple. If capital is cheap (low interest rates) it is easier to get money to hire more people, build more buildings, engage in other businesses, etc. you keep spending money, because it is easy to borrow more. However, if capital is expensive (high interest rates) there is less money to engage in those activities. You are less likely to spend money because it will be harder to borrow more.
The reason why religions are against interest, specifically usury, is quite simple. God commands us to be productive and build. You are allowed to charge for work you do. But you need to work. Lending out money and charging usury is considered charging for nothing. In other words, you are producing and taking without producing anything of real value. Basically, you are doing nothing and getting something and it is called exploitation of lender.
So being a Muslim, I adhere to some investing principles laid down by our scholars in the field of finance. I have observed that the interest-bearing debts of your company is high & income from interest & other resources are also high. We have observed that companies whose interest-bearing debt is high, fails to grow somehow in future, we all know paying extra amount for a debt is never a good thing whether its business or any other thing & this is the reason that I completely reject this interest-bearing debt & the interest income & other such types of income.
I hope that you have understood my points here & I kindly request your good office to gradually quit from any interest-based activities for the betterment of business. Looking forward to be with you with a bright future.
Thanks & Regards
(Your Name HERE)

Aftab Alam
TNG- Team