Venture Deals · glossary

Share premium

Everything paid for a share above its nominal value. It is held in the share premium account, a reserve that is not profit and cannot be paid out as an ordinary dividend. Chapter 2

Explained in Chapter 2, Founding a Company, of Venture Deals.

The main page for this term is Share premium, in Shareholders' Agreements.

How it comes up, in Chapter 1
On day one the register showed two names and nothing else. The founders paid €1 a share, the nominal value (the fixed face value of each share). Later investors paid hundreds of euros a share, and everything paid above the nominal value is share premium. Chapter 2 explains why the difference matters.
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Where this term lives

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