limited liability

limited liability
Shareholders in a limited company are only liable to third parties to the limit of their shareholding. Other participants e.g. directors would not normally have any personal liability except with respect to creditors where there has been wrongful or fraudulent trading or when personal guarantees or other such undertakings have been given by directors or others.

Easyform Glossary of Law Terms. — UK law terms.


limited liability
n.
Liability for corporate losses that is restricted in some way, usually to the amount that an investor or shareholder has placed in the corporation and not reaching personal assets.

The Essential Law Dictionary. — Sphinx Publishing, An imprint of Sourcebooks, Inc. . 2008.


limited liability
A feature of corporations and LLCs where the business owners are legally responsible for paying business debts, claims, and judgments only to the extent of the capital they invested in the business. This means that if the business folds, creditors cannot seize or sell the business owner's home, car, or other personal assets.
Category: Business, LLCs & Corporations → LLCs, Corporations, Partnerships, etc.

Nolo’s Plain-English Law Dictionary. . 2009.


limited liability
n. Liability upon which limits are set by contract or by statute.

Webster's New World Law Dictionary. . 2000.

limited liability
n.
   the maximum amount a person participating in a business can lose or be charged in case of claims against the company or its bankruptcy. A stockholder in a corporation can only lose his/her investment, and a limited partner can only lose his/her investment, but a general partner can be responsible for all the debts of the partnership. Parties to a contract can limit the amount each might owe the other, but cannot contract away the rights of a third party to make a claim.

Law dictionary. . 2013.

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Look at other dictionaries:

  • Limited liability — is a concept whereby a person s financial liability is limited to a fixed sum, most commonly the value of a person s investment in a company or partnership with limited liability. A shareholder in a limited company is not personally liable for… …   Wikipedia

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  • limited liability — noun the liability of a firm s owners for no more than the capital they have invested in the firm • Hypernyms: ↑indebtedness, ↑liability, ↑financial obligation * * * noun 1. : the liability of shareholders in a corporation or a limited company 2 …   Useful english dictionary

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