Thursday, August 20, 2009

ACTU: Penalties for Hardie directors not enough

The penalties and bans handed down to former James Hardie executives and directors are not enough considering the extent of their immoral and illegal behavior and the harm the company’s deadly asbestos products have caused, say unions.

Justice Gzell of the New South Wales Supreme Court has today handed down fines and bans from directorships to the former board of James Hardie for misleading and deceptive statements made earlier this decade.

Unions have expressed disappointment that the financial penalties were well short of those sought by the Australian Securities and Investments Commission.

ACTU Secretary Jeff Lawrence said: “It is important for the victims of James Hardie’s asbestos products that justice was done but these penalties will provide them with little comfort.

“The former directors betrayed the trust of innocent victims of the company’s products by deliberately lying about James Hardie’s ability to meet its compensation liabilities.

“While we welcome the disqualifications given to the former directors, the financial penalties are inappropriate for the magnitude of the breaches of their duties.”

Former chief executive Peter Macdonald has been fined $350,000 and disqualified from company management for 15 years. The Australian Securities and Investments Commission had sought a fine of between $1.47 million and $1.81 million. Former chairwoman Meredith Hellicar and other non-executive directors have been fined $30,000 and disqualified for five years.

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