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.

QUIZZES

TAKE THIS QUIZ IF A DAZZLING VOCABULARY IS YOUR DESIDERATUM!

Have the Words of the Day from October 19–25, 2020, made an indelible mark on your memory? Take the quiz to find out!
Question 1 of 7
What does “clement” mean?

Origin of limited liability

First recorded in 1850–55
Dictionary.com Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2020

Example sentences 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

Cultural definitions for limited liability

limited liability

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

notes for limited liability

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.