Agio

Shares in the capital of a BV or NV have a nominal value. This is the amount stated in the company's articles of association.
When shares are issued, it often happens that the value of the shares exceeds the nominal value. The person who acquires the new shares must then pay more than the nominal value. This excess over the nominal value is the share premium.

If nothing special is stipulated in the articles of association, the share premium is diluted. This means it is not allocated to the shares on which it was paid. The share premium then accrues to all shareholders.

When share premium is to be repaid to shareholders, a resolution of the general meeting and the board of the company is required. When repaying to private persons who are shareholders, it is desirable to first convert the share premium into share capital. This can be done by issuing new shares and then stamping them via an amendment to the articles of association. Otherwise, dividend tax and substantial interest tax will be due on redemption.

For more information on share premium redemption, please contact us. We will be happy to advise you.