The other states have backed a NSW move to legislate to force James Hardie Industries to compensate asbestos victims. The proposed legislation would allow victims to claim against the former James Hardie parent company with the claims being met by the present company.

The states gave their support at a meeting of the Ministerial Council for Corporations, part of the Standing Committee of Attorneys-General.

They are also pushing for amendments to the Corporations Act to prevent companies from adopting the strategy used by James Hardie to shift liability.

Meanwhile, directors of the Medical Research and Compensation Foundation – set up to administer an asbestos fund set up by James Hardie before it moved its corporate headquarters overseas – have been in intense negotiations with James Hardie to reach an agreement on future compensation for asbestos victims.

The foundation has been granted a court date in December to seek further protection from being sued by future claimants for not capping payouts to make the money last longer.

The foundation may be put into liquidation in a few weeks unless James Hardie provides $85 million. Negotiations are expected to continue. James Hardie has indicated it would help out, pending more information from the foundation.