limited liability

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.

limited liability

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

limited liability

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

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.

Word History and Origins

Origin of limited liability¹

First recorded in 1850–55

Example Sentences

David Levine, a professor of law at UC San Francisco, said Wednesday’s arrest ultimately didn’t seem to change the limited liability that public officials have in a fire through government immunity.

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That was a limited liability company that partnered with the charity to offer jobs to people in Uganda, mostly to handle back-office work for U.S. companies, including the collection of past-due invoices.

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KL2 is a limited liability company that names Leonard — whose jersey number is 2 — as its manager.

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Lang serves as president of Aerial Rapid Transit Technologies, the limited liability company behind the controversial proposed gondola system that would take baseball fans from Union Station to Dodger Stadium.

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The identity of every single buyer isn’t clear, since many are obscured by trusts or limited liability companies, but real estate records and local sources suggest that developers are buying the lion’s share of lots.

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