The High Court has ruled that seven former directors of James Hardie misled the Australian Stock Exchange about the company’s ability to fund compensation claims from asbestos victims.

 

In 2009, an initial decision by the NSW Supreme Court found that the directors misled the ASX and the directors were banned from serving on company boards for five years. However, that ban was overturned in 2010 by the NSW Court of Appeal, which found that a draft ASX announcement by the company was not a breach because the directors had not approved it.

 

The High Court’s decision, made in regard to an appeal by the Australian Securities & Investment Commission (ASIC) against the decision of the NSW Court of Appeal, found that the directors of James Hardie did approve the draft ASX announcement made by the company and, in doing so, breached their duty to the company.

 

The President of the ACTU, Ged Kearney, has welcomed the decision, saying it was a step towards justice for the families of those who suffered at the company’s hands.

 

“These people were at the helm of a company which was responsible for one of Australia’s worst corporate crimes and it is incomprehensible that they sought to get off scot free,” Ms Kearney said.

“Australia has the highest death rate from mesothelioma in the world, and the death toll continues to rise.

“Unions are determined to hold James Hardie to account and ensure that James Hardie fulfils its responsibilities towards people who have contracted diseases from its asbestos products.”