August 20, 2009 - Australian Corporate Execs Fined For Flaunting Asbestos Law

Corporations are increasingly being held accountable in countries all over the world for inappropriate and inadequate response to asbestos legislation and regulations. Executives and officers of James Hardie Industries NV were recently held personally responsible for violations–the former CEO was fined to the tune of A$350,000 and barred from running a corporation for 15 years for failing to maintain an adequate pool of funds to address asbestos claims by employees. Other officers were fined, though at much lower rates.

Since the company itself had earlier been fined A$80,000 ($66,467) for not observing a 2001 rule demanding continuous disclosure of asbestos risks, the A$350,000 looks to be a serious attempt by the local Australian court to let individuals know they cannot escape consequences for their behavior by hiding behind the company.

When the charge is failing to maintain an adequate fund for compensating asbestos victims, it’s even more surprising to realize that the company has invested  $20.3 million in contesting the case just since February 2007. How much more will it spend on appealing the court’s ruling?

How much better might this money have been used. Revealing true risks of asbestos exposure and sources of potential contamination would thus serve the interests of employees while also helping the organization build credibility and valuable public relations for its responsible attitude towards its people.

If you have a mesothelioma diagnosis and you believe you may have been exposed to asbestos in your work at some time in your life, be sure to speak with a qualified asbestos attorney. You may be eligible to receive compensation for your suffering and loss. We are here to help–call us 24/7 at 800.443.6353.