ACCA ICAEW Tax Compliance Practice Exam 2026 – All-in-One Resource to Ensure Exam Success!

Premium-listed companies on the London Stock Exchange are required to adhere to the highest standards of corporate governance, which includes applying the principles of the UK Corporate Governance Code. This requirement is enshrined in the Listing Rules and involves not just the application of these principles but also a clear obligation for companies to disclose how they have applied them in their annual reports.

By stating their application in annual reports, companies demonstrate transparency and accountability to their stakeholders. This includes explaining any deviations from the Code's recommendations, which is essential for maintaining investor confidence and ensuring good governance practices. This requirement of both application and disclosure distinguishes premium listed companies from those with standard listings, which may not have the same level of obligations regarding governance and reporting.

Government regulations and annual audits, while important, do not encompass the specific requirements related to how corporate governance principles must be applied and communicated, which is why other options do not fully capture the essence of the listing rules for premium companies.