CIPS Exam L5M2 Topic 1 Question 6 Discussion

Actual exam question for CIPS's L5M2 exam

Question #: 6
Topic #: 1

Company X is a large company which is traded on the UK stock exchange. According to the Companies (Miscellaneous Reporting) Regulations 2018- is it obligatory for Company X to follow a Corporate Governance Code?

Ayes- all companies in the UK must follow this

Byes- all companies trading on the stock exchange must do this

Cno- corporate governance codes are not mandatory

Dno- but if it doesn't follow a Corporate Governance Code it must explain the reasons why not

Show Suggested Answer

Suggested Answer: D

The correct answer is 4 - the policy is 'comply or explain' - basically say which code you follow, or explain (publicly) why you're not following one. See p. 145 for more information on this

by Rhea at Nov 19, 2022, 08:58 PM

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