SYDNEY, Australia—Australian securities regulators are seeking fines of up to $200,000 Australian ($165,800) for each breach of duty proved against former directors and officers of building materials company James Hardie Industries N.V. in a civil hearing scheduled later this month in New South Wales Supreme Court.

The Australian Securities & Investments Commission, which initiated the civil action in Feb. 2007, said in a statement that criminal charges would not be pursued against the defendants, who are seven former directors and three former officers of James Hardie and its subsidiaries. The commission also said it would not pursue its indemnity claim of up to $1.90 billion Australian ($1.57 billion) against James Hardie to ensure the company remained able to incur asbestos-related liabilities.

The hearing is scheduled to begin Sept. 29.

ASIC initiated the civil action in Feb. 2007 against the company, which set up a fund in 2001—the Medical Research & Compensation Foundation—to compensate people who contracted asbestos-related diseases from contact with its products. ASIC said at the time that the proceedings were related to disclosures made by the company as to the adequacy of the fund.

ASIC alleged that some executives of the company did not act with the requisite care and diligence when making certain statements about the adequacy of the MRCF, and ongoing asbestos-related liabilities faced by the company.

When it was established, the MRCF provided $293 million Australian ($242.3 million) to pay all claims related to its former asbestos producing subsidiaries. Citing actuarial assessments, the company attested to regulators that the fund was adequate to cover its liabilities. However, amid public criticism, the trust was later found to face a significant funding shortfall.

The company and the New South Wales government eventually reached a $3.40 billion Australian ($2.80 billion), 40-year compensation package for asbestos sufferers. ASIC said it decided not to pursue the $1.9 billion claim to guarantee James Hardie's solvency because the funding arrangement was finalized.

While the $3.4 billion deal shielded James Hardie officers from being sued individually, it did not grant immunity from actions by securities regulators. Among the defendants facing allegations by ASIC are Peter Macdonald, former chief executive officer of James Hardie, and Philip Morley, chief financial officer of related company James Hardie Industries Ltd., which has since been renamed ABN 60 Pty Ltd. ASIC will ask the court to disqualify Mr. Macdonald and Mr. Morley from managing corporations, ASIC said in a statement.