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
Collins English Dictionary – Complete and Unabridged, 12th Edition 2014 © HarperCollins Publishers 1991, 1994, 1998, 2000, 2003, 2006, 2007, 2009, 2011, 2014
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.
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|Noun||1.||limited liability - the liability of a firm's owners for no more than the capital they have invested in the firm|
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