Sydney  - The former chief executive of building products maker James Hardie Industries NV was Thursday banned from managing a company for 15 years over a press release that exaggerated the company's ability to fund asbestos compensation.

Peter Macdonald was one of 10 former James Hardie officers to be punished by a court in Sydney.

James Hardie, which used to be Australian but is now registered in the Netherlands, is obliged by law to cover the health care of Australians who developed illnesses from contact with its asbestos products.

The court case revolved around misleading statements made in a press release about the compensation fund of 4.5 billion Australian dollars (3.2 billion US dollars).

Macdonald was also fined 350,000 Australian dollars (287,000 US dollars). Former chairwoman Meredith Hellicar was disqualified for five years and fined 30,000 Australian dollars.

The action was brought by corporate watchdog the Australian Securities and Investments Commission.

James Hardie agreed in 2005 to make payments into a compensation fund capped at 35 per cent of the company's cash flow in any one year.

It also agreed to provide 5 million Australian dollars over 10 years to fund medical research into asbestos diseases. (dpa)