limited liability definition

limited liability

Legal protection available to the shareholders (stockholders) of privately and publicly owned corporations under which the financial liability of each shareholder of the firm for the firm's debts and obligations is limited to the par value of his or her fully paid-up shares. The firm itself, as a legal entity, is liable for the rest. Also called limited personal liability.

limited liability is in the Banking, Commerce & Finance, Corporate, Commercial, & General Law and Entrepreneurship, Management, & Leadership subjects.

limited liability appears in the definitions of the following terms: private limited company, limited personal liability, de facto corporation, unlimited liability company, corporation act, limited company, international business company (IBC), C Corporation (C Corp), limited partnership, articles of partnership and

limited liability appears in the other terms: limited liability company (LLC), limited liability limited partnership (LLLP), limited liability partnership (LLP)

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