James Hardie Group: Corporation Rules and Regulations
Introduction:
James Hardie group is one of the Australia largest asbestos manufacturers. The group had been liable for 70% of Australian asbestos consumption. However, in February 2007, ASIC had started to impose civil proceedings against James Hardie, the directors and the officers, as ASIC alleged that JHIL and both executive and non-executive had breached their statutory duty. This short research report had outlined the role of ASIC and various penalty that ASIC can impose under Corporation Act 2001. Besides that, we will also discuss the position that ASIC had held from 2004 until current date in relation to the directors of Hardie group. At last, I had provided a summary of the ASIC’s media release that had been established on 13 May 2011, and indentified the element that ASIC is hoping the High Court to uphold.
The Role of ASIC:
The Australian Security and Investment Commission (ASIC) is a commonwealth statutory corporation that set up by Australian Securities and Investments Commission Act, and it is a regulator which in charge of monitoring the Australia’s Corporation, products, markets and financial services (Lipton, Herzberg and Welsh 2012, p. 736).
On the other hand, ASIC is also a commonwealth authority that is responsible for governing the Corporation Act. ASIC Act provided that ASIC owned such powers and function that endowed by the corporation legislation to ASIC. Thus, what exactly is the corporation legislation means? Under Section 5(1), they had interpreted the term ‘corporation legislation’ to mean the ASIC Act and the Corporation Act (Baxt, Finnane and Harris 2012). Besides that, ASIC also owned the power to initiate prosecution for criminal offences or apply for civil penalty orders if they believed that there’s a contravention of the law. ASIC is also able to ban a director from managing a company for a certain period if they contravened their general duties. For instance, in the case of ASIC v Stephen William Vizard [2005], the
James Hardie group is one of the Australia largest asbestos manufacturers. The group had been liable for 70% of Australian asbestos consumption. However, in February 2007, ASIC had started to impose civil proceedings against James Hardie, the directors and the officers, as ASIC alleged that JHIL and both executive and non-executive had breached their statutory duty. This short research report had outlined the role of ASIC and various penalty that ASIC can impose under Corporation Act 2001. Besides that, we will also discuss the position that ASIC had held from 2004 until current date in relation to the directors of Hardie group. At last, I had provided a summary of the ASIC’s media release that had been established on 13 May 2011, and indentified the element that ASIC is hoping the High Court to uphold.
The Role of ASIC:
The Australian Security and Investment Commission (ASIC) is a commonwealth statutory corporation that set up by Australian Securities and Investments Commission Act, and it is a regulator which in charge of monitoring the Australia’s Corporation, products, markets and financial services (Lipton, Herzberg and Welsh 2012, p. 736).
On the other hand, ASIC is also a commonwealth authority that is responsible for governing the Corporation Act. ASIC Act provided that ASIC owned such powers and function that endowed by the corporation legislation to ASIC. Thus, what exactly is the corporation legislation means? Under Section 5(1), they had interpreted the term ‘corporation legislation’ to mean the ASIC Act and the Corporation Act (Baxt, Finnane and Harris 2012). Besides that, ASIC also owned the power to initiate prosecution for criminal offences or apply for civil penalty orders if they believed that there’s a contravention of the law. ASIC is also able to ban a director from managing a company for a certain period if they contravened their general duties. For instance, in the case of ASIC v Stephen William Vizard [2005], the