Which companies must follow the QCA Corporate Governance Code?

The QCA Corporate Governance Code is designed primarily for AIM (Alternative Investment Market) quoted companies, which are smaller or growing companies listed on the AIM platform within the London Stock Exchange. This code provides a framework to help these companies adopt good governance practices, promote accountability, and improve their operational integrity.

It is essential for AIM companies as they may lack the same level of resources and governance structures that larger, more established firms possess. The QCA Code also helps these companies communicate their governance policies to investors, thereby instilling confidence in their corporate management and business strategies.

Other choices, like companies with over 2000 employees or standard listed companies, do not specifically require adherence to the QCA Code. Standard listed companies generally follow the UK Corporate Governance Code, which is more comprehensive and applicable to larger entities. NEX Exchange Growth Market companies, while they have their own governance guidelines, are not directly under the jurisdiction of the QCA Code, making AIM quoted companies the precise focus of this corporate governance framework.