The NSW Government has given giant manufacturer James Hardie an extra month to finalise a funding agreement for the company’s asbestos claims.

The deadline has been extended to October 31 and reflects ongoing discussions between the NSW Government, James Hardie and the Australian Taxation Office. It is the fourth time the deadline for agreement on a compensation deal for asbestos sufferers has been delayed.

It is believed the Australian Securities and Investments Commission (ASIC) has asked James Hardie to pay legal bills for executives who have been involved in its ongoing investigation.

The company’s annual report, filed with the New York Stock Exchange last week, discloses a liability to indemnify executives and directors involved in the ASIC investigation.

However, the building materials manufacturer has also just been told by Federal Treasurer Peter Costello that indemnifying its officers could breach Australian law.

Mr Costello says Australian legislation prohibits a company from indemnifying a person against legal costs incurred in defending any proceedings in which the person is found to have a liability.

Asked which former executives are being investigated, an ASIC spokesman told Sunrise Exchange News the regulator is conducting a broad, ongoing investigation into James Hardie but could not comment further.