Hardie Shareholders Approve Asbestos Compensation

February 7 , 2007 - Shareholders of the James Hardie Corporation approved a $4 billion asbestos compensation deal last night, ending a long battle between the company and victims of asbestos-related diseases caused by Hardie’s insulation products.

James Hardie chairwoman Meredith Hellicar said she was delighted that the overwhelming majority of shareholders had approved the plan after six years of often heated controversy over the fund.

“I am extremely heartened and proud that the long-term compensation proposal has won the approval of our security holders and is ready for implementation,” Ms. Hellicar said.

“It has been a long, complex and often difficult process but such an unprecedented arrangement could not be settled with a quick fix, given the fund is intended to last for 40 years and possibly longer.”

Bernie Banton, a victims’ advocate, told the Sydney Morning Herald that he was “relieved” the deal had been finalized and hoped that Australians would now “get behind the company.”  He said this was a long battle that they “could not afford to lose.”

“It's absolute relief, to finally have got justice for all future victims,” Mr. Banton said.  “I was always very confident that shareholders would approve this deal but I certainly wasn't going to jump the gun because there had been disappointment before.”

“We need James Hardie to continue to grow and expand,” Banton added.  “Without the company flourishing they won't have the funds to pay the future victims. We've all got to move forward together.”

By 2020, experts believe another 53,000 cases of asbestos-related disease will be diagnosed in Australia.