ASIC has announced that it has commenced civil penalty proceedings in
relation to James Hardie, including against a number of former and
current directors and former executives.
The proceedings arise from ASIC’s investigation of
matters identified by the Special Commission of Inquiry into the
Medical Research and Compensation Foundation.
ASIC’s investigation into possible criminal actions continues.
The civil penalty proceedings filed in the
Supreme Court of New South Wales relate to disclosures by James
Hardie Industries Limited (JHIL) in respect to the adequacy of the
funding of the Medical Research and Compensation Foundation (MRCF).
ASIC’s proceedings seek declarations that a number
of former and current directors and former executives failed to act
with requisite care and diligence. The regulator is asking the court to
consider banning individuals from acting as a company director and
The action also seeks declarations that the
companies, JHIL and James Hardie Industries NV (JHINV), made misleading
statements and contravened continuous disclosure requirements. ASIC
further alleges that JHINV failed to act with requisite care and
diligence in relation to its then-subsidiary JHIL.