Companies
James Hardie sued over asbestos fund
The
Australian Securities and Investments
Commission (ASIC) has brought a suit against
James Hardie
accusing the building materials company of misleading shareholders over the cost
of funding for the company’s asbestos compensation programme. Meredith Hillcar
has as a result resigned as James Hardie chair, and Michael Brown and Michael
Gillfillan as non-executive directors.
Jeffrey Lucy, ASIC
chairman, said while James Hardie’s new compensation arrangements are to be
welcomed, they do not remove the obligation for requisite care and diligence on
the part of directors.
Hardie has already made its
first A$184.3m payment
into the Asbestos Injuries Compensation Fund.
John Barr, acting chairman,
said the three directors had stepped down in order to remove any conflicts of interest,
and argued that they have put the best interests of the company above their own personal
circumstances.
Hardie also announced the
delay of its third quarter results while it reviews whether or not the ASIC
allegations are likely to have any impact on the company’s financial statements.
Links
Australian Securities and Investments
Commission
James Hardie
March 2007 |
