The Law Council of Australia wants any compensation scheme for James Hardie asbestos victims to lock in their common law rights and legal representation.

James Hardie, the Australian Council of Trade Unions, the NSW Labor Council and victims are thrashing out the underfunding of the trust set up by the company in 2001. It is expected to run out of money within three years.

Law Council President Stephen Southwood QC says asbestos claims should cost less and be more efficient, and warns that more investigation is needed before any changes to the Corporations Act that would “enable the corporate veil to be pierced”.

All reform proposals should be checked by a body such as the Corporations and Markets Advisory Committee, he says.

The council wants voluntary administration and liquidation provisions of the Corporations Act to take long-tail claims into account.