PUBLISHER: MALAYSIASME.
In the simplest business entity, sole proprietorship, where the owner holds absolute interest in the business and where his heirs are not legally obliged to continue the business. The sole proprietor who is a Muslim may Will away (Wasiat) to a successor who is not an heir if the value of his interest does not exceed 1/3 of his total estate. In Selangor State, a Muslim is allowed to bequeath to any heir. Alternatively, a Muslim may distribute this interest to his spouse(s) under the practice of distribution of joint matrimonial assets (Harta Sepencarian). The business succession also may involve buy-sell agreement with insurance/takaful funding mechanism, and family trust or foundation set-up for advanced planning. …
