ASIC v James Hardie

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 imposing fines.

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.