ID :
22502
Fri, 10/03/2008 - 19:11
Auther :
Shortlink :
http://m.oananews.org//node/22502
The shortlink copeid
CEO oversaw James Hardie statements
Former James Hardie CEO Peter Macdonald was responsible for approving company statements at the time it allegedly misled the public about its capacity to meet asbestos compensation claims, a court has heard.
The Australian Securities and Investments Commission (ASIC) is suing 10 former James Hardie directors and executives in the NSW Supreme Court, including Mr Macdonald, claiming they breached corporate disclosure rules.
ASIC alleges unequivocal statements made in a James Hardie release to the Australian Securities Exchange (ASX) that its compensation trust was fully funded were misleading and deficient.
James Hardie made $293 million worth of assets available to the Medical Research and Compensation Foundation (MRCF) when it was set up in February 2001, but just two years later compensation claims were estimated to reach beyond $1.09 billion.
Steve Ashe, James Hardie's vice president of investor relations at the time, said under cross-examination Friday Mr Macdonald was ultimately responsible for approving public statements. "When a release was prepared, who was it at management level who finally determined whether the release shout be put out or should go for approval before being put out?" Mr Ashe was asked by Thomas Bathurst, QC, a barrister for four other James Hardie executives.
Mr Ashe replied: "Peter Macdonald." Mr Ashe told the court corporate affairs executive vice president Greg Baxter would sign off on releases before they went to Peter Macdonald for final approval.
When asked by Mr Bathurst where the James Hardie board looked to ensure the accuracy of company statements, Mr Ashe replied: "I believe the board looked to the CEO for that confirmation."
"Corporate affairs wasn't the sole decider as to whether it (a release) was accurate or not," he said.
Mr Bathurst asked Mr Ashe what he would have done if he had doubts about a statement's accuracy after it had been approved by management, to which he said he would have notified Mr Baxter.
"Have you ever on occasions had to do that?" Mr Bathurst asked.
"No," replied Mr Ashe.
The trial continues.
The Australian Securities and Investments Commission (ASIC) is suing 10 former James Hardie directors and executives in the NSW Supreme Court, including Mr Macdonald, claiming they breached corporate disclosure rules.
ASIC alleges unequivocal statements made in a James Hardie release to the Australian Securities Exchange (ASX) that its compensation trust was fully funded were misleading and deficient.
James Hardie made $293 million worth of assets available to the Medical Research and Compensation Foundation (MRCF) when it was set up in February 2001, but just two years later compensation claims were estimated to reach beyond $1.09 billion.
Steve Ashe, James Hardie's vice president of investor relations at the time, said under cross-examination Friday Mr Macdonald was ultimately responsible for approving public statements. "When a release was prepared, who was it at management level who finally determined whether the release shout be put out or should go for approval before being put out?" Mr Ashe was asked by Thomas Bathurst, QC, a barrister for four other James Hardie executives.
Mr Ashe replied: "Peter Macdonald." Mr Ashe told the court corporate affairs executive vice president Greg Baxter would sign off on releases before they went to Peter Macdonald for final approval.
When asked by Mr Bathurst where the James Hardie board looked to ensure the accuracy of company statements, Mr Ashe replied: "I believe the board looked to the CEO for that confirmation."
"Corporate affairs wasn't the sole decider as to whether it (a release) was accurate or not," he said.
Mr Bathurst asked Mr Ashe what he would have done if he had doubts about a statement's accuracy after it had been approved by management, to which he said he would have notified Mr Baxter.
"Have you ever on occasions had to do that?" Mr Bathurst asked.
"No," replied Mr Ashe.
The trial continues.
