limited liability

American  

noun

1. 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.

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limited liability British  

noun

1. 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

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limited liability Cultural  

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

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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.

Etymology

Origin of limited liability

First recorded in 1850–55

Example Sentences

And then there’s growing risk around whether all of the demand ever turns into revenue, given limited availability for land, buildings, and power for data centers.

From Barron's • Jun. 12, 2026

That approach, he said, ran in contrast to the one it took in years past, where it limited availability for its more fashionable products “to maintain an aura of coolness around the brand.”

From MarketWatch • Apr. 15, 2026

Azure’s revenue potential was capped by the limited availability of AI hardware, but cloud demand is still outpacing supply, Chief Financial Officer Amy Hood told investors at the time.

From The Wall Street Journal • Mar. 31, 2026

Tools powered by artificial intelligence could help expand access, particularly for people who face high costs or limited availability of licensed professionals.

From Science Daily • Mar. 2, 2026

Agriculture and manufacturing continue to play a minor role in the economy, constrained by the limited availability of cultivatable land and the shortage of domestic labor.

From The 1995 CIA World Factbook by United States. Central Intelligence Agency