The New South Wales Supreme Court has imposed bans and penalties on former directors and officers of James Hardie following the ruling in April 2009 by Justice Ian Gzell that the ten had breached their duties to the company in 2001 over a misleading media release about asbestos compensation.
Some of the former executives are expected to appeal. The Age commented that the bans are likely to have less impact on Gillfillan and Koffel, who have long business careers in the United States, where the ban will not apply.
The disqualification periods imposed came close to the maximums sought by the ASIC, although the financial penalties were lower.
| Director | Former Role | Disqualification Period | Penalty |
|---|---|---|---|
| Peter Macdonald | Managing Director | 15 years | A$350,000 |
| Peter Shafron | General Counsel | 7 years | A$75,000 |
| Phillip Morley | Chief Financial Officer | 5 years | A$35,000 |
| Michael Brown, Michael Gillfillan, Meredith Hellicar, Martin Koffel, Dan O’Brien, Greg Terry and Peter Willcox | Non-executive directors | 5 years | A$30,000 |
Further Reading
Valuable lesson for non-executive directors – The Age, 21 August 2009
Last Updated: 20 August 2009