If shares are issued for more than their face value, the extra amount over face value is called a share premium. The total of all the share premiums is credited to a share premium account in the company's books.
Part of shareholders’ funds in a company’s balance sheet. Arises when shares are issued at a premium to their nominal value. For example, if shares with a nominal value of 100p are issued at a price of 150p, the share capital of the company will increase by the nominal value of 100p per share and the share premium account will increase by 50p per share. The total of share capital plus share premium account therefore represents the total cash raised from shareholders by the company in the past.