{"id":"nsw:sl-2007-0044","name":"James Hardie Former Subsidiaries (Winding up and Administration) Regulation 2007","slug":"james-hardie-former-subsidiaries-winding-up-and-administration-regulation-2007","collection":"regulation","jurisdiction":"nsw","status":"in_force","isInForce":true,"actNumber":"44 of 2007","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":178459,"registerId":"nsw-nsw:sl-2007-0044-current","compilationNumber":null,"startDate":"2026-04-05","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Name of Regulation","content":"#### 1 Name of Regulation\n\n1 Name of Regulation\n\n> This Regulation is the [James Hardie Former Subsidiaries (Winding up and Administration) Regulation 2007](/view/html/inforce/current/sl-2007-0044).","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n2 Commencement\n\n> This Regulation commences on 8 February 2007.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Definition","content":"#### 3 Definition\n\n3 Definition\n\n> In this Regulation:\n> \n> the Act means the [James Hardie Former Subsidiaries (Winding up and Administration) Act 2005](/view/html/inforce/current/act-2005-105).","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Payment of statutory recovery claims during periods of insufficient funding","content":"#### 4 Payment of statutory recovery claims during periods of insufficient funding\n\n4 Payment of statutory recovery claims during periods of insufficient funding\n\n> > (1) For the purposes of section 32 (3) (b) of the Act, statutory recovery claims against a liable entity are to be paid in accordance with the provisions of this clause if the funding (the available annual funding) set aside under the Final Funding Agreement for the payment of such claims by the SPF trustee during a financial year beginning with the financial year commencing on 1 April 2012 will not be sufficient to cover the payment of all such claims (whether actual or anticipated) within the year concerned.\n> > \n> > Note—\n> > \n> > This clause does not apply to limit the payment of statutory recovery claims if the available annual funding is sufficient to meet all existing and new claims during the financial year concerned.\n> \n> > (2) Subject to subclauses (3), (4) and (5), the payment of statutory recovery claims from the available annual funding is to be deferred until the period of 7 days before the end of the financial year concerned (the distribution period).\n> \n> > (3) If the available annual funding is sufficient to pay all new claims in full but not all existing claims, then:\n> > \n> > > (a) all new claims are to be paid in full during the distribution period in priority over any existing claims, and\n> > \n> > > (b) any funding that remains from the available annual funding following the payment of all new claims is to be applied during the distribution period:\n> > > \n> > > > (i) to pay in full as many existing claims as is possible from the remaining funding (commencing with the earliest existing claim the payment of which remains outstanding), and\n> > > \n> > > > (ii) to pay in part one other existing claim with any funding that remains following the full payment of existing claims in accordance with subparagraph (i), and\n> > \n> > > (c) the payment of the whole or any part of an existing claim that remains outstanding is deferred until the next financial year at which partial or full payment of the claim is permitted by or under the Act.\n> \n> > (4) If the available annual funding is insufficient to pay all new claims in full and there is only one claimant, then:\n> > \n> > > (a) the funding is to be applied during the distribution period:\n> > > \n> > > > (i) to pay in full as many new claims as is possible from that funding, and\n> > > \n> > > > (ii) to pay in part one other of the new claims with any funding that remains following the full payment of new claims in accordance with subparagraph (i), and\n> > \n> > > (b) the payment of the whole or any part of a new claim that remains outstanding is deferred until the next financial year at which partial or full payment of the claim is permitted by or under the Act, and\n> > \n> > > (c) the payment of the whole or any part of an existing claim that remains outstanding is deferred until the next financial year at which partial or full payment of the claim is permitted by or under the Act.\n> \n> > (5) If the available annual funding is insufficient to pay all new claims in full and there is more than one claimant, then:\n> > \n> > > (a) the available annual funding is to be allocated between each claimant (a claimant’s allocation) by reference to the value in total of new claims made by the claimant as a proportion of the value in total of new claims made by all claimants, and\n> > \n> > > (b) each claimant’s allocation is to be applied during the distribution period:\n> > > \n> > > > (i) to pay in full as many of the claimant’s new claims as is possible from that allocation, and\n> > > \n> > > > (ii) to pay in part one other of the claimant’s new claims with any funding that remains following the full payment of new claims in accordance with subparagraph (i), and\n> > \n> > > (c) the payment of the whole or any part of a new claim that remains outstanding is deferred until the next financial year at which partial or full payment of the claim is permitted by or under the Act, and\n> > \n> > > (d) the payment of the whole or any part of an existing claim that remains outstanding is deferred until the next financial year at which partial or full payment of the claim is permitted by or under the Act.\n> \n> > (6) In this clause:\n> > \n> > existing claim means any statutory recovery claim made in a previous financial year that remains unpaid (whether wholly or partly).\n> > \n> > new claim means any statutory recovery claim made in the financial year concerned.\n> \n> **cl 4:** Ins 2012 (112), Sch 1.","sortOrder":3},{"sectionNumber":"5","sectionType":"section","heading":"Prescribed asbestos medical research provider: clause 11 (b) of Schedule 1","content":"#### 5 Prescribed asbestos medical research provider: clause 11 (b) of Schedule 1\n\n5 Prescribed asbestos medical research provider: clause 11 (b) of Schedule 1\n\n> For the purposes of clause 11 (b) of Schedule 1 to the Act:\n> \n> > (a) The Asbestos Diseases Research Foundation (ACN 121 168 867) is prescribed as the asbestos medical research provider to which the balance of any trust assets are to be transferred, and\n> \n> > (b) 100 per cent is prescribed as the proportion of the balance of any trust assets to be transferred to that provider.\n> \n> **cl 5 (previously cl 4):** Ins 2010 (97), cl 3. Renumbered 2012 (112), Sch 1.","sortOrder":4},{"sectionNumber":"6","sectionType":"section","heading":"James Hardie Industries SE is prescribed continuation of James Hardie Industries NV","content":"#### 6 James Hardie Industries SE is prescribed continuation of James Hardie Industries NV\n\n6 James Hardie Industries SE is prescribed continuation of James Hardie Industries NV\n\n> The Societas Europaea with the corporate name James Hardie Industries SE (and registered as a foreign company under the Corporations Act with that name and ARBN 097 829 895) is prescribed as a continuation of James Hardie Industries NV for the purposes of the definition of James Hardie Industries NV in section 4 (1) of the Act.\n> \n> **cl 6 (previously cl 5):** Renumbered 2012 (112), Sch 1.","sortOrder":5}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"The Regulation remains tightly focused on its original purpose: operationalising the James Hardie asbestos compensation scheme. It addresses specific technical gaps in the primary Act regarding payment prioritisation during funding shortfalls, designates the research beneficiary, and accommodates corporate restructuring. There is no scope creep beyond the asbestos compensation framework established by the 2005 Act."},"complexity_factors":["Nested conditional logic with multiple scenarios (sufficient funds for new but not existing claims, single claimant with insufficient funds, multiple claimants with insufficient funds)","Cross-references to primary Act (James Hardie Former Subsidiaries (Winding up and Administration) Act 2005) and external agreement (Final Funding Agreement)","Defined terms within clauses (existing claim, new claim, available annual funding, distribution period) that are essential to understanding the payment mechanics","Proportional allocation mathematics required for multi-claimant scenarios","Temporal deferral mechanisms pushing unpaid claims into future financial years","Historical amendment notes indicating clause renumbering and insertion points"],"plain_english_summary":"This Regulation sets out specific rules for managing payments to asbestos victims from the James Hardie compensation scheme when money runs short in a given year.\n\n**What it does:**\n\n*   **Manages shortfalls:** It creates a system for paying victims (called \"statutory recovery claims\") when the annual funding set aside under the James Hardie compensation deal isn't enough to cover all claims in a particular financial year.\n*   **Prioritises new claims:** If there's not enough money to pay everyone, new claims made that year get priority over older unpaid claims.\n*   **Sets payment rules:** It establishes a detailed pecking order for who gets paid and when:\n    *   If money is short but can cover all new claims, new claims get paid first in full, then remaining money goes to older claims starting with the oldest.\n    *   If there's only one claimant (victim) and not enough money, their new claims get paid first (as many as possible in full, then one partially), with everything else deferred to the next year.\n    *   If there are multiple claimants and not enough money, the available funds get divided proportionally between them based on the size of their claims.\n*   **Names the research beneficiary:** It designates the Asbestos Diseases Research Foundation as the recipient of any leftover trust assets for medical research.\n*   **Tracks corporate changes:** It recognises that James Hardie Industries SE (a European company structure) is the legal continuation of James Hardie Industries NV, ensuring the compensation obligations follow the company through its corporate restructuring.\n\n**Who it affects:**\n\n*   **Asbestos victims** making claims against James Hardie companies\n*   **The Special Purpose Fund (SPF) trustee** who administers the payments\n*   **James Hardie Industries** and its corporate successors\n*   **Medical researchers** studying asbestos-related diseases\n\n**Why it matters:**\nThis Regulation provides crucial protection for asbestos victims by ensuring there's a fair, transparent system for distributing limited compensation funds when claims exceed available money in a particular year. It prevents a \"first come, first served\" scramble and ensures newer, often more urgent claims aren't left behind while older claims drain the fund."},"flash_summary":{"complexity_score":5,"scope_assessment":{"changed":true,"description":"This Regulation does not create new funding sources but specifies operational rules that alter how the Act’s payment powers operate in practice. It (a) prescribes the timing, priority and method for allocating available annual funding when it will be insufficient to meet all statutory recovery claims in a year (cl 4), (b) prescribes a single medical research provider to receive 100% of any remaining trust assets under Schedule 1 (cl 5), and (c) prescribes that James Hardie Industries SE is to be treated as the continuation of James Hardie Industries NV for the Act’s definitional purposes (cl 6). These prescriptions narrow and clarify the Act’s operational scope by setting specific administrative outcomes and beneficiaries for the situations addressed."},"complexity_factors":["Clause 4 contains multiple conditional branches with different payment rules depending on funding sufficiency and number of claimants (cl 4(2)–(5)).","Interdependence with external instruments: references to the Act and to the Final Funding Agreement mean implementation requires checking those documents (cl 3; cl 4(1)).","Timing rule: deferred payments and a narrow distribution period (7 days before year end) require precise accounting and scheduling (cl 4(2)).","Allocation formula for multiple claimants requires proportional valuation of new claims across claimants (cl 4(5)(a)).","Definitions of ‘existing claim’ and ‘new claim’ are critical to operation, and small factual differences change outcomes (cl 4(6)).","Clauses 5 and 6 are simple prescriptions but have legal effect on who receives residual assets and how a corporate entity is treated for definitional purposes (cl 5; cl 6)."],"plain_english_summary":"This Regulation prescribes how the SPF trustee must allocate a fixed annual funding pool when it will not cover all statutory recovery claims: payments are deferred until the year‑end distribution period, new claims generally get priority, allocations among multiple claimants are prorated, and partial payments/deferrals follow a defined sequencing. It also directs any leftover trust balance to the Asbestos Diseases Research Foundation and treats James Hardie Industries SE as the continuing James Hardie entity. It affects claimants’ timing and the trustee’s administrative duties."},"summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"Based on the available information, the regulation appears to have remained focused on its original purpose: governing the winding up and administration of James Hardie's former subsidiaries. The three amendments (2007, 2010, 2012) likely reflect procedural updates or adjustments to the administration process rather than any fundamental change in scope. The core subject matter — orderly dissolution of the relevant subsidiaries within the asbestos compensation framework — appears consistent throughout."},"complexity_factors":["Sits within a complex broader legislative and corporate restructuring context (James Hardie asbestos compensation framework)","Requires understanding of both corporate insolvency law concepts (winding up, administration, liquidation) and specific NSW statutory schemes","Interacts with multiple pieces of legislation including the parent Act and the Interpretation Act 1987","Has been amended across three distinct versions (2007, 2010, 2012), requiring attention to which version applies to a given situation","Technical corporate/insolvency law subject matter not easily accessible to laypersons","Limited actual text of the regulation is available in this extract, making full analysis difficult and suggesting content complexity may be higher than apparent"],"plain_english_summary":"## James Hardie Former Subsidiaries (Winding up and Administration) Regulation 2007\n\n**What is this about?**\n\nThis is a NSW regulation connected to the **James Hardie asbestos compensation saga** — one of Australia's most significant corporate accountability cases. James Hardie was a building products company whose former subsidiaries manufactured asbestos products that caused serious diseases (like mesothelioma and asbestosis) in thousands of Australians.\n\n**What does this regulation do?**\n\nIt sets rules around the formal **winding up** (shutting down) and **administration** (management by an appointed controller) of James Hardie's former subsidiary companies. These subsidiaries were the legal entities originally responsible for paying compensation to asbestos victims. The regulation provides the legal framework for how those companies are to be dissolved or managed — ensuring the process is orderly and that compensation obligations are properly handled during the transition.\n\n**Who does this affect?**\n- **Asbestos victims and their families** who may have claims against former James Hardie subsidiaries\n- **Administrators and liquidators** (people legally appointed to manage or close down a company) handling those subsidiaries\n- **Creditors** (those owed money by the subsidiaries)\n- The broader public interest in ensuring corporate accountability for asbestos harm\n\n**Why does it matter?**\n\nThe James Hardie situation led to landmark legislation after the company attempted to restructure in a way that arguably left asbestos victims without adequate compensation. This regulation is part of the legal machinery ensuring the wind-down of the old subsidiaries doesn't leave victims worse off. It has been in force since 2007 and last updated in 2012, suggesting the administrative process is largely settled but ongoing.\n\n**Bottom line:** If you are an asbestos victim, a family member of one, or a legal professional dealing with James Hardie claims, this regulation governs how the former subsidiaries responsible for those claims are being formally closed down."},"issue_detection":{"absurdities":[],"contradictions":[]}},"importantCases":[],"_links":{"self":"/api/acts/james-hardie-former-subsidiaries-winding-up-and-administration-regulation-2007","history":"/api/acts/james-hardie-former-subsidiaries-winding-up-and-administration-regulation-2007/history","analysis":"/api/acts/james-hardie-former-subsidiaries-winding-up-and-administration-regulation-2007/analysis","conflicts":"/api/acts/james-hardie-former-subsidiaries-winding-up-and-administration-regulation-2007/conflicts","importantCases":"/api/acts/james-hardie-former-subsidiaries-winding-up-and-administration-regulation-2007/important-cases","documents":"/api/acts/james-hardie-former-subsidiaries-winding-up-and-administration-regulation-2007/documents"}}