ACA ICAEW Business, Technology and Finance Practice Exam

For premium listed companies on the London Stock Exchange, the Listing Rules require these companies to apply the principles of the UK Corporate Governance Code and report on their compliance with these principles. This means that they must not only adopt the principles set out in the Code but also provide an annual report that details how they are adhering to those principles, including any areas where they might not comply and the rationale for that non-compliance. This approach promotes transparency and accountability, aligning with best practices in corporate governance.

While other options may relate to aspects of company governance, they do not fully encapsulate the specific obligations associated with premium listings in the context of the Listing Rules. For example, the Wates Code is primarily concerned with corporate governance for larger companies, but it is not exclusive to premium listed companies or sufficient to meet the full requirements outlined in the Listing Rules. Similarly, strictly following company law does not address the broader governance standards expected of premium listed companies, which also includes adhering to the governance principles of the UK Corporate Governance Code. Regular updates to shareholders on financial health are important in financial communication but do not specifically meet the governance reporting requirements outlined for premium listed companies.