How should premium listed companies communicate their adherence to the UK Corporate Governance Code?

Premium listed companies are required to communicate their adherence to the UK Corporate Governance Code primarily through their annual reports. This approach is mandated as it allows for a comprehensive overview of the company's compliance or provides explanations for any deviations from the Code. Annual reports are a formal and standardized means of disclosing such information, ensuring that all stakeholders, including shareholders, regulators, and the public, have access to the same insights about governance practices.

By detailing compliance or offering explanations for non-compliance in the annual reports, companies fulfill their obligation to be transparent about their governance structures and practices. This transparency helps build trust with investors and enhances the overall integrity of the company.

While other methods, such as verbal communication during shareholder meetings, may supplement the information, they do not provide the same level of detailed, formal documentation that is expected in annual reports. Similarly, merely publishing guidelines online or responding only when requested by shareholders does not meet the comprehensive disclosure requirements outlined in the UK Corporate Governance Code.