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

Bohm alleges that his parents used his cash from the four limited liability companies to pay their expenses.

From Los Angeles Times

The address listed for the LLC is the same as the one registered for another limited liability company tied to the purchase of a $42 million Lake Tahoe home in December.

From MarketWatch

As part of the settlement agreement, Moderna will appeal to a federal circuit court to argue that it has limited liability as a government contractor.

From Barron's

Moderna will appeal to a federal circuit court to argue that it has limited liability as a government contractor.

From Barron's

Moderna will appeal to a federal circuit court, arguing limited liability as a government contractor, with a potential $1.3 billion payment.

From The Wall Street Journal