Treatment of shares after the Matching has been completed

 

What happens on 6 April 2020?

Your 2017 Matched Shares will be allocated to your Shareworks account (along with your Acquired Shares that you have already purchased) and will be held on your behalf in your Shareplus account.

The Plan Administrator will manage the withholding or sale of sufficient shares to cover any applicable withholding taxes (if any apply for you), such as those applicable in the UK, US, Malaysia, Canada, Chile etc. In other countries, such as Australia and Singapore, no withholding taxes apply. Instead, the tax payable on Matched Shares will be settled through your individual tax return. Please refer to the Tax on Matched Shares section of this document for further information.

What are my options?

Once your Matched Shares have been allocated, you can choose to hold, sell or transfer your shares, as follows:

Holding your shares: You can retain your shares in your Shareworks account. For more information on retaining your shares in your Shareworks account refer to Shareworks Account section for more information.

Selling your shares: If you choose to sell your shares, the Plan Administrator will arrange the sale, and BHP will pay the costs of the sale for you. This may be a significant advantage for you if you live in a location where shares on the relevant stock exchange are not freely traded (e.g. if you live in Canada/Chile you may find it harder to find a broker who will deal in ASX listed shares). Refer to the Selling Shares section below for more information.

Transferring your shares: Transferring your shares moves them from Shareworks into your own name on the relevant stock/securities exchange, should you wish to subsequently transfer them to another person, trust, superannuation account, or sell them through your own broker. You will no longer be able to view your shares on Shareworks. Refer to the Transferring Shares section below for more information.

If you wish to sell or transfer your shares you will be subject to the operation of Our Requirements for Securities Dealing. When dealing with any shares you must ensure that you comply with Our Requirements for Securities Dealing which can be downloaded from the BHP Digital Workspace.

Why are my Matched Shares and Acquired Shares kept in the Shareworks account after the vesting?

You can choose to keep your shares in your Shareworks account for as long as you remain in employment with BHP. Keeping your shares in this account has the following potential benefits:

  • Your dividends are able to be distributed to you through payroll, if you receive your salary in a currency other than AUD, GBP or USD (rather than in the currency determined by the Company’s dividend policy).
  • You can instruct the Plan Administrator to sell the Acquired Shares or Matched Shares for you (subject to the operation of Our Requirements for Securities Dealing), meaning that you do not need to make arrangements with a broker to sell the shares for you. This can be a particular benefit in countries where brokers may not habitually trade in those shares on the relevant stock exchange (for example if you are in Chile or Canada and have shares on the Australian Stock Exchange).
  • You will not have any costs of sale such as brokerage or commission because the Plan Administrator and BHP will cover these costs for you.