Definition of share premium in English:

share premium


  • The amount by which the amount received by a company for a stock issue exceeds its face value.

    ‘reduction of share capital or share premium account’
    • ‘None of this is evidence that the share premium is set to decline as investors and unit-trust managers jump into the market.’
    • ‘The share premium reduction exercise is conditional on shareholder approval.’
    • ‘‘These costs have not been recognised and will be charged to the share premium account,’ said the prospectus.’
    • ‘The telecom giant announced on Wednesday that it would seek shareholder approval to wipe out its entire share premium account balance at the end of 2003 in a capital reduction exercise.’
    • ‘That, we submit, when one reads that with paragraph 67, is really no different to a company having a share premium account, or a reserve account.’