Limited-liability

limited liability

noun
a liability restricted by law or contract, as the liability of owners of shares in a corporation or limited company, or that of a special partner.

Origin:
1850–55

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World English Dictionary
limited liability
 
n
(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 & Unabridged 10th Edition
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American Heritage
Cultural Dictionary

limited liability definition


A fundamental feature of corporations, whereby investors are liable only up to the amount of their investment.

Note: This principle is important for failing corporations because it holds that only the assets of the corporation, not the personal assets of its owners, can be liquidated (see liquidation) to cover the corporation's debts.
The American Heritage® New Dictionary of Cultural Literacy, Third Edition
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