limited liability

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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.

Nearby words

  1. limitation,
  2. limitative,
  3. limited,
  4. limited company,
  5. limited edition,
  6. limited monarchy,
  7. limited partner,
  8. limited partnership,
  9. limited policy,
  10. limited war

Origin of limited liability

First recorded in 1850–55

Dictionary.com Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2019

Examples from the Web for limited liability



British Dictionary definitions for limited liability

limited liability

noun

British 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 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Culture definitions for limited liability

limited liability

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 New Dictionary of Cultural Literacy, Third Edition Copyright © 2005 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.