limited liability(redirected from Limit of Liability)
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(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
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.