IMPACT OF THE JAMES HARDIE DECISION ON DIRECTORS' DUTIES

摘要

The much anticipated decision of the New South Wales Supreme Court, Australian Securities and Investments Commission (ASIC) v Macdonald and Ors (No 11) was delivered last month. The case concerned allegations of breaches of directors' and officers' duties by former non-executive directors and executives of James Hardie entities and the entities themselves. Gzell J presided over the case and made numerous findings against the directors, executives and entities, attaching high standards to individuals who occupy the role of Company Secretary and General Counsel where continuous disclosure obligations were concerned. The decision will result in a renewed focus around the process and quality of decision making in corporations.