Former James Hardie chief executive Peter Macdonald has been banned from managing a company for 15 years and fined $350,000 after being found guilty of issuing a false and misleading statement about the company’s ability to fund asbestos compensation.
The NSW Supreme Court also handed down strong penalties to former James Hardie non-executive directors, Meredith Hellicar and former Telstra director Peter Willcox. They were both fined $30,000 and banned from managing a company for five years.
Peter Shafron, the former general consul of James Hardie, was hit with a seven year band and fined $75,000, while former chief financial officer Phillip Morley was fined $35,000 and disqualified for five years.
The former James Hardie officials were found guilty in April of breaching the Corporation Act for their role in the release of a media statement in 2001 which claimed the company had the capacity to meet its obligation to funds it asbestos compensation fund.
The company itself was fined $80,000.
Some of the defendants may still lodge appeals against their penalties.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
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