Why use a stapled security structure?
Stapling allows investors to invest in different entities that are traded as one. This means that investors can receive the benefits of investing in different types of entities (eg Australian and Bermudian companies) within the one traded instrument. Generally, a stapling deed governs the stapling arrangements. Where a foreign security is stapled to a domestic security, the regulatory/corporate governance requirements of both jurisdictions must be considered. This gives additional comfort to security holders, given the regulatory/corporate governance standards must always meet the “highest common standard “.
