What do the London Stock Exchange Listing Rules require from premium listed companies?

Premium listed companies on the London Stock Exchange are required to apply the principles of the UK Corporate Governance Code and to explicitly state their compliance with these principles in their annual reports. This requirement ensures transparency and accountability, as it allows stakeholders to assess how well the company adheres to required governance standards. By stating compliance, companies not only fulfill a regulatory obligation but also build trust with investors, reinforcing their commitment to good governance practices.

This aspect of the listing rules is crucial for promoting high standards of corporate governance, which is essential for investor confidence and the overall integrity of the capital markets. It aligns with the overarching goal of encouraging good management practices and protecting the interests of shareholders.

In contrast, other options do not encapsulate the primary requirement for premium listed companies. While adhering to company policy and conducting board evaluations are important aspects of governance, they are not specifically mandated as requirements for compliance with the London Stock Exchange Listing Rules. Additionally, merely submitting annual financial reports does not encompass the comprehensive governance expectations outlined in the Code. Thus, the emphasis on applying the Code's principles and detailing compliance in annual reports is what distinctly characterizes the obligations of premium listed companies.