BHP Playing Board Games Ahead of Revamp

As BHP moves towards a major revamp, the resources giant has revealed it is going to lose two directors and has asked a third who planned to retire to hang on for another year to help oversee the changes.

BHP revealed in a statement to the ASX that director Malcolm Broomhead had agreed to stay for a further year to provide continuity after two directors resigned to take up chair positions with other companies.

At the mining giant’s annual general meeting in November Susan Kilsby will retire after two years on the board and Anita Frew will retire after six years at BHP. Michelle Hinchliffe will join BHP’s board from 1 March, 2022 and the longest-serving member, Mr Broomhead will extend his 11-year tenure to 2022.

“Malcolm has informed the Board that he will not remain on the board after the 2022 Annual General Meetings”, the company added.

Ms Frew has been appointed chair of jet engine maker, Rolls Royce in the UK. While Ms Kilsby has been appointed chair of the US building products and plumbing group, Fortune Brands Home and Security.

BHP said in Tuesday’s statement that the board has recommended shareholders vote against two items up for vote at the AGM on November 11.

One is to amend the company’s constitution to allow member resolutions at the annual general meeting. This would allow shareholders to “express an opinion, ask for information, or make a request, about the way in which a power of the company partially or exclusively vested in the directors has been or should be exercised”.

The second proposal not endorsed by the board is about climate-related lobbying, that would see BHP resigning from any industry associations that do not support the Paris Agreement goals.

But the big discussions at the meeting will be the spinoff of the company’s oil and gas business to Woodside, the start of the multi-billion-dollar Jansen potash project in Canada and the simplification of the company’s sharemarket listing and structure with the Plc listing in London ending and the company centralising everything in Australia.

There are more details and reports to be issued on all three subjects.

BHP shares rose 0.6% to $41.73 despite another dip in iron ore prices to $US123.84, a new 12 month low.


About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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