Answer to Question #327265 in Law for Vilo

Question

Lily has been appointed as an auditor in Yujung Construction Sdn. Bhd. One day,

her colleague Mr. Kim had informed her that the company accounts are not

properly drawn up. The upper management had embezzled the fund for illicit and

bribery. Lily felt very shocked and he told Lily to keep it a secret as he is still

being investigated about that. The next day, it shows that Mr. Kim had been

removed from his post in the company. Lily felt very dissatisfied with that and

started to investigate on her own.

During the general meeting, Lily as an auditor made a statement that the company

had embezzled the money for illicit purposes and fighting for Mr. Kim's right. The

upper management wants to sue Lily for defamation of the company due to the

statement that she made during the general meeting.

Discuss, whether Lily can be liable for her action for defamation in respect of her

statement as an auditor?

Issue,Law,Application,Conclusion

This subject is company law