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CIPS L5M2 Exam - Topic 1 Question 6 Discussion

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?
D) no- but if it doesn't follow a Corporate Governance Code it must explain the reasons why not
A) yes- all companies in the UK must follow this
B) yes- all companies trading on the stock exchange must do this
C) no- corporate governance codes are not mandatory

CIPS L5M2 Exam - Topic 1 Question 6 Discussion

Actual exam question for CIPS's L5M2 exam
Question #: 6
Topic #: 1
[All L5M2 Questions]

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?

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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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Alex
10 months ago
Actually, C is misleading; they do have to explain deviations.
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Grover
10 months ago
B seems right, all listed companies should follow it.
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Mammie
10 months ago
Wait, is it really not mandatory? That seems odd.
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Virgie
11 months ago
Totally agree with D, that's how it works!
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Jovita
11 months ago
I think it's D, they need to explain if they don't follow it.
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Alfreda
11 months ago
I recall that the Companies (Miscellaneous Reporting) Regulations 2018 introduced some flexibility, so I think option C could be correct too.
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Kayleigh
11 months ago
I’m a bit confused because I thought all companies on the stock exchange had to comply, but maybe it's just a recommendation?
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France
11 months ago
I practiced a similar question where it mentioned that companies need to explain if they don't follow the code, so I might lean towards option D.
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Lawrence
11 months ago
I think I remember that not all companies are required to follow a Corporate Governance Code, but I'm not sure if it applies to all listed companies.
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Elizabeth
11 months ago
Ah, I remember learning about this in class. I'm pretty sure the difference has to do with how they match directories and subdirectories.
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Glenn
11 months ago
This looks like a pretty straightforward question on generalized extreme value distributions. I'm pretty confident I can handle this one.
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Ona
11 months ago
I'm a bit confused by the options. The question mentions that the traffic is going through the overlay, but option B talks about UI being configured to force traffic into the underlay. I'm not sure if that's the right answer.
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