share premium(redirected from Capital surplus)
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share premiumthe excess of the issue price of a share over its nominal value. A company's share premium account exists for certain defined purposes, namely:
- (i) to issue fully paid bonus shares;
- (ii) to write off preliminary expenses;
- (iii) to write off the expenses of, or any discount allowed on, any issue of shares or debentures;
- (iv) to provide for any premium payable on the redemption of debentures.