limited liability


Also found in: Dictionary, Thesaurus, Financial, Acronyms, Wikipedia.

limited liability

n. the maximum amount a person participating in a business can lose or be charged in case of claims against the company or its bankruptcy. A stockholder in a corporation can only lose his/her investment, and a limited partner can only lose his/her investment, but a general partner can be responsible for all the debts of the partnership. Parties to a contract can limit the amount each might owe the other, but cannot contract away the rights of a third party to make a claim. (See: corporation, shareholder, limited partnership, partnership, liquidated damages)

Mentioned in ?
References in periodicals archive ?
On the other hand, limited liability is generally believed to
poorly understood by most, limited liability provides investors with
Third, limited liability, dividends, interest payments,
parties (particularly where limited liability does not correct existing
A contemporaneous charge for limited liability and entities that
liability ex post, a limited liability charge would be a powerful policy
LIMITED LIABILITY AND THE KNOWN UNKNOWN
English Limited Liability Act in 1855 and its adoption in the Australian
limited liability, it is one of the crucial characteristics of the
limited liability, are driven by economic efficiency imperatives so that
considered the impact of limited liability rules on companies and
advantages of limited liability rules which include avoidance of
limited liability, creditors of an insolvent company would first look to
THE INTRODUCTION OF LIMITED LIABILITY INTO THE ENGLISH AND AUSTRALIAN COLONIAL COMPANIES ACTS: INEVITABLE PROGRESSION OR CHAOTIC HISTORY?

Legal browser ?
Full browser ?