share premium
(redirected from share premiums)Also found in: Dictionary, Financial.
Related to share premiums: Capital surplus, Additional Paid In Capital
share premium
the 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.
Collins Dictionary of Law © W.J. Stewart, 2006