A company was split evenly between two groups, each holding nearly half the shares. I was one of the directors representing the slightly larger group. We all sold our shares and I resigned. Now, I’ve learned that the other group has accused me of wrongdoing, based on a report they haven’t shared with me. Can I sue them for defamation, along with the company auditors?

Apni Law
Apni Law
Law Forum › Category: Corporate › A company was split evenly between two groups, each holding nearly half the shares. I was one of the directors representing the slightly larger group. We all sold our shares and I resigned. Now, I’ve learned that the other group has accused me of wrongdoing, based on a report they haven’t shared with me. Can I sue them for defamation, along with the company auditors?
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Apni Law Staff asked 1 year ago

A company was split evenly between two groups, each holding nearly half the shares. I was one of the directors representing the slightly larger group. We all sold our shares and I resigned. Now, I’ve learned that the other group has accused me of wrongdoing, based on a report they haven’t shared with me. Can I sue them for defamation, along with the company auditors?

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Apni Law Staff answered 1 year ago

Under Indian law, you could potentially sue for defamation if the accusations are false and have harmed your reputation. However, you’ll need to prove the accusations were made maliciously and without reasonable grounds. You might also have a claim against the auditors if their report formed the basis of the false accusations and they acted negligently.

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