The Australian Securities and Investments Commission (ASIC) says its successful prosecution of James Hardie directors and executives provides "important guidance" on executive and director duties in disclosing important board matters.

Chairman Tony D'Aloisio says fines and bans against three former executives and seven directors imposed by the NSW Supreme Court "is another important step in improving corporate governance in Australia".

He says the court action "will add confidence to the integrity of our markets".

Central to the case was a 2001 press release that claimed a fully funded compensation fund would provide certainty to asbestos victims. Just two years later, it was revealed the fund faced a shortfall of more than $1 billion.

The NSW Supreme Court found the actions of the former executives and James Hardie Industries had breached the Corporations Act.

Former CEO Peter Macdonald was fined $350,000 and banned from company directorships for 15 years, while former company secretary and general counsel Peter Shafron received a $75,000 fine and a seven-year ban. Former CFO Philip Morley was fined $35,000 and banned for five years.

The seven non-executive directors received fines of $30,000 and five-year bans. They are Michael Brown, Michael Gillfillan, Meredith Hellicar, Martin Koffell, Geoffrey O'Brien, Gregory Terry and Peter Willcox. The company received a fine of $80,000.

The defendants are expected to appeal the findings and the penalties imposed.