Which companies are encouraged to apply the UK Corporate Governance Code?

The UK Corporate Governance Code is designed to promote high standards of corporate governance among companies in the UK. While large public companies are required to adhere to this code, recent efforts have encouraged broader application among a wider range of companies, particularly in response to a growing awareness of governance issues in smaller and unlisted firms.

The option relating to smaller and unlisted companies, along with larger private companies that may opt for the Wates Code, reflects an understanding of the evolving landscape of corporate governance, which recognizes that effective governance is beneficial regardless of a company's size or listing status.

The Wates Corporate Governance Principles for Large Private Companies provides a tailored approach for larger private entities, ensuring that they can adopt appropriate governance practices in a way that suits their particular circumstances. This framework aims to ensure that all private companies, not just the largest or public ones, maintain integrity and accountability in their operations.

This inclusive approach highlights important governance principles while allowing smaller entities and those not listed on stock exchanges to benefit from such practices without the full burden of the requirements imposed on larger public companies. By encouraging adherence to the Wates Code and the original UK Corporate Governance Code, the emphasis is fundamentally on improving standards and practices across all sections of the business landscape.