What is one of the considerations for larger private companies regarding the governance code?

Larger private companies often have the flexibility to select governance codes that suit their particular circumstances. The Wates Code is particularly relevant for larger private companies as it provides a framework specifically designed for them, focusing on principles of good governance while allowing for a more tailored approach compared to the UK Corporate Governance Code, which primarily applies to publicly listed entities. By choosing to adopt the Wates Code, these companies can adhere to a recognized set of governance principles without being bound by the more stringent requirements imposed on public companies.

The option relating to the strict adherence to the UK Corporate Governance Code is not applicable, as that code is intended for publicly traded companies rather than larger private firms. On the other hand, while it is true that larger private companies are not mandated to adopt any governance code, the Wates Code provides them with valuable guidance, should they choose to implement governance practices. The idea of avoiding board evaluations does not align with good governance practices, as evaluations are typically a key component of ensuring accountability and effectiveness in leadership.