THE treatment of actuarial reports and definition of “corporate morality” are expected to be the main legal arguments advanced by CSR when it appeals against the blocking of its planned demerger next month.
The company won leave yesterday to appeal against the decision in February by the Federal Court, which ruled that splitting CSR’s sugar and building materials operations could disadvantage victims of asbestos poisoning, The Australian Financial Review reports.
In rejecting the demerger, judge Margaret Stone said the deal was inconsistent with “public policy and commercial morality” as it could leave the building materials business with a capital base too small to compensate asbestos victims if the economy deteriorated and claims ballooned.
Lawyers for CSR are also likely to test the idea of “commercial morality” and argue that this was not clearly defined in the judgement.
Three Federal Court judges will begin hearing the matter on March 29, and the case should be concluded the next day.
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