Court rules against former James Hardie directors
24 August 2009
The Supreme Court of New South Wales, Australia has handed down fines to ten former directors and officers of James Hardie Industries and banned them from managing companies for between five and 15 years. The sanctions relate to misleading statements about employee exposure to asbestos.
Supreme Court Justice, Ian Gzell ordered that former James Hardie chief executive, Peter MacDonald be fined AU$ 350000 (US$ 290000) and disqualified from managing a corporation for 15 years.
Mr Gzell also issued fines of AU$ 75000 (US$ 62000) and AU$ 35000 (US$ 29000) respectively to the company's former general counsel, James Shafron and former chief financial officer Phillip Morley.
Mr Shafron was also disqualified from managing a corporation for seven years, while Mr Morley was disqualified for five years.
Seven other non-executive directors were also found to have breached the act by Supreme Court Justice Mr Gzell, and each was fined AU$ 30000 (US$ 25000) and disqualified from managing corporations for five years.
The Australian Securities and Investments Commission (ASIC) started the civil proceedings after it considered James Hardie had breached Australia's Corporation Act relating to asbestos sufferers.
Supreme Court Justice, Ian Gzell ordered that the company and two other defendants pay ASIC's costs.
A statement from James Hardie said it is considering its position regarding an appeal of the ruling.
