Share Premium Reserve
/ˈʃɛər ˈprɪmiəm rɪˈzɜrv/
Definitions
- (n.) An equity account reflecting the amount received by a company from shareholders exceeding the nominal value of issued shares.
The company recorded a large credit in the share premium reserve after issuing shares above their par value.
Forms
- share premium reserve
Related terms
See also
Commentary
Typically distinct from stated capital, the share premium reserve represents funds that may be subject to restrictions on distribution as dividends depending on jurisdiction.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.