limited liability

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limited liability

n
(Stock Exchange) Brit liability restricted to the unpaid portion (if any) of the par value of the shares of a limited company. It is a feature of share ownership

limited liability

If a company goes bankrupt and has limited liability, the owners of the company (the shareholders) are only obliged to pay back company debts with the money they have already invested in the firm. They will not be forced to sell their personal possessions to help pay debts.
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.limited liability - the liability of a firm's owners for no more than the capital they have invested in the firm
financial obligation, indebtedness, liability - an obligation to pay money to another party
References in periodicals archive ?
The limit of liability for the event is for warehouses of ETA, "Dart" and "Flirt" - 94 000 000 PLN, for warehouses ED250 "Pendolino" - 180 000 000 PLN;
Other cases held, correctly, that the intent of the policy was to limit losses to one limit of liability regardless of the number of years that coverage was in existence.
If a lesser limit of liability is stated below or elsewhere in this Policy, the lesser limit will apply.
The limit of liability should be at least equal to yours, preferably one million dollars.
Unlike the ICC Rules 1975 and the new UNCTAD/ICC Rules 1991, the MTC 1980 defers to the relevant unimodal rules only if they provide for a higher limit of liability.
Chubb's D&O Elite is a nonrescindable and noncancelable policy that offers directors and officers a dedicated limit of liability that is not shared with the corporate entity.
The insured can buy individual limits for each insuring agreement or one aggregate limit of liability for the entire policy.
The limit of liability for the event is for warehouses ETA - 94 000 000 PLN, for warehouses ED250 - 180 000 000 PLN.