The state and territory governments have agreed to launch a second inquiry into legal loopholes that allow companies to avoid liabilities related to injury and death.

Despite reservations expressed by the Federal Government, the Ministerial Council for Corporations has created a working party to investigate the issue. It will work in parallel with a federal inquiry being run through the Corporations and Markets Advisory Committee (CAMAC).

NSW Attorney-General Bob Debus says the new inquiry will develop options for restricting the philosophy of limited liability when corporate groups are involved in liability cases for death or serious injury.

Although it won’t have the power to implement the options, the working group will draft legislative amendments designed to solve the James Hardie problem.

The Federal Government has agreed to take part in the study but says it believes it is unnecessary, given the ongoing CAMAC investigation.