SYDNEY, Australia – The former directors of building materials giant James Hardie Industries NV misled investors about their ability to compensate victims of its asbestos products, an Australian court was told Monday in the opening of a civil trial against the embattled company.
The Australian Securities and Investments Commission is suing 10 former James Hardie officials, who each face maximum fines of 200,000 Australian dollars ($166,000) and a disqualification from managing a corporation.
James Hardie agreed last year to pay A$4 billion ($3.3 billion) to an asbestos compensation fund over the next 40 years, ending months of negotiations with unions and asbestos support groups.
But the ASIC claims James Hardie and its executives “failed to act with requisite care and diligence” when they told investors that the company’s asbestos compensation plan was fully funded when it was actually short more than 1 billion Australian dollars ($830 million).
ASIC’s attorney, Tony Bannon, told New South Wales Supreme Court on Monday that the company issued a statement in 2001 to the Australian Securities Exchange announcing the formation of its Medical Research and Compensation Fund, in which it claimed the foundation had “sufficient funds to meet all legitimate compensation claims.”
Bannon said the “unequivocal statement” came despite advice to the company that estimating the cost of future compensation liabilities was “fraught with difficulties.”
Around 20 members of the Asbestos Disease Foundation of Australia were in court for the trial’s opening Monday, including Karen Banton, the widow of asbestos campaigner and former James Hardie employee Bernie Banton who died last year at the age of 61 after a long battle with lung disease.
Banton contracted asbestosis after working for a James Hardie subsidiary from 1968 to 1974. Workers at the factory were known as “snowmen” because they were regularly coated with the white asbestos powder that the company made into fire-repellant wallboard and other products.
The former machine operator launched his campaign against James ardie—once Australia’s largest asbestos maker—in 2001 after the company shifted its headquarters from Sydney to the Netherlands. The company said the move was for tax reasons; critics said it was designed to avoid a slew of asbestos-related lawsuits.
The ASIC has called 58 witnesses for the trial, which is expected to last several months. – AP – GMANews.TV
It’s women’s month!
“Support women every day of the year!”
Invoke Article 33 of the ILO constitution
against the military junta in Myanmar to carry out the 2021 ILO Commission of Inquiry recommendations against serious violations of Forced Labour and Freedom of Association protocols.
Accept National Unity Government
(NUG) of Myanmar.
Reject Military!
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Monthly Observances:
Women’s Role in History Month
Weekly Observances:
Week 1: Environmental Week
Women’s Week
Week 3: Philippine Industry and Made-in-the-Philippines
Products Week
Last Week: Protection and Gender-Fair Treatment
of the Girl Child Week
Daily Observances:
March 8: Women’s Rights and
International Peace Day;
National Women’s Day
Mar 4— Employee Appreciation Day
Mar 15 — World Consumer Rights Day
Mar 18 — Global Recycling Day
Mar 21 — International Day for the Elimination of Racial Discrimination
Mar 23 — International Day for the Right to the Truth concerning Gross Human Rights Violations and for the Dignity of Victims
Mar 25 — International Day of Remembrance of the Victims of Slavery and the Transatlantic Slave Trade
Mar 27 — Earth Hour