| Commentary

162 Share premium account

| Commentary

E: ISSUE OF SHARES AT A PREMIUM

162 Share premium account

The nominal value of a share is the face value of the share, the value which the company declares it to be. Consequently, there is often no relationship between the nominal value of a share and its net asset value at the time of issue nor its market price at any later time. This means that, although shares may not be issued at a discount, they are often issued for consideration which is of greater value than their nominal value1. The amount by which the consideration exceeds the nominal value

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