---
title: "What is Shariah resolution (board decision)? | IslamicOpenFinance™"
description: "A recorded decision of a Shariah board or committee on a product, transaction or issue, with its reasoning and any dissent."
url: https://islamicopenfinance.com/glossary/shariah-resolution/
lang: en-GB
source: "IslamicOpenFinance"
---

[Glossary](https://islamicopenfinance.com/glossary/) / [Shariah governance](https://islamicopenfinance.com/glossary/#governance)

Shariah governance

# Shariah resolution (board decision)

A recorded decision of a Shariah board or committee on a product, transaction or issue, with its reasoning and any dissent.

A Shariah resolution is a recorded decision of an institution's Shariah board or committee on a product, transaction, document or issue. Bank Negara Malaysia's Shariah governance policy document requires records of the committee's decisions submitted to the Bank to be supported by key deliberations, the rationale and any significant concerns or dissenting views, and requires decisions to be made by simple majority. AAOIFI's fatwa standard requires an institution to follow a board decision that prohibits or requires an act. Recording the question, the facts relied on, the decision and its scope is what lets the decision be applied and audited later.

## Sources

- [Bank Negara Malaysia, Policy Document on Shariah Governance, 2019: Shariah committee decisions, records and majority voting](https://www.bnm.gov.my/documents/20124/761679/Shariah+Governance+Policy+Document+2019.pdf)

This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.

## Related terms

[**Fatwa** A juristic opinion on a Shariah question; in finance, usually a Shariah board's ruling on a product or transaction.](https://islamicopenfinance.com/glossary/fatwa/) [**Shariah supervisory board** An independent panel of Shariah scholars that approves an institution's products and oversees its Shariah compliance.](https://islamicopenfinance.com/glossary/shariah-board/) [**Shariah review** A regular compliance function that assesses whether an institution's operations follow Shariah requirements.](https://islamicopenfinance.com/glossary/shariah-review/) [**Istifta (request for a Shariah opinion)** The act of seeking a Shariah opinion on a matter that has occurred or is expected to occur.](https://islamicopenfinance.com/glossary/istifta/) [**Conflict of interest (Shariah committee)** A member's interest that could affect a decision; it must be declared, and the member steps out of that matter.](https://islamicopenfinance.com/glossary/conflict-of-interest/)

**Shariah governance**

1. [Shariah supervisory board](https://islamicopenfinance.com/glossary/shariah-board/)
2. [Fatwa](https://islamicopenfinance.com/glossary/fatwa/)
3. [Shariah governance system](https://islamicopenfinance.com/glossary/shariah-governance-system/)
4. [Shariah review](https://islamicopenfinance.com/glossary/shariah-review/)
5. [Shariah audit](https://islamicopenfinance.com/glossary/shariah-audit/)
6. [Shariah non-compliance risk](https://islamicopenfinance.com/glossary/shariah-non-compliance-risk/)
7. [Purification of income](https://islamicopenfinance.com/glossary/purification/)
8. [Central Shariah board](https://islamicopenfinance.com/glossary/central-shariah-board/)

[All 221 terms](https://islamicopenfinance.com/glossary/)