High Court Alert for Directors in the James Hardie Decision

In handing down a decision in favour of ASIC in regard to the of James Hardie matter, the High Court has reminded directors of their duties to shareholders and to the market generally. 

In view of the continuing pressure on companies to manage remuneration fairly and disclose all relevant aspects of Key Management Personnel (KMP) remuneration to shareholders, this decision highlights the need for comprehensive engagement by directors in the detailed workings of remuneration policies, plans and outcomes.

The decision illustrates the detail in which the courts may and will examine board decisions in the current climate.

The text of the decision can be found on the High Court section of the Austlii website.

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