Limited Liability Definition

noun
Liability upon which limits are set by contract or by statute.
Webster's New World Law

(finance) The liability of an owner or a partner of a company for no more capital than they have invested.

Wiktionary
adjective
(law) Of a business entity, having liability for legal claims that is limited to the assets of the entity itself, and which therefore does not reach the assets of the individual owners/investors of the company.
Wiktionary

Other Word Forms of Limited Liability

Noun

Singular:
limited liability
Plural:
limited liabilities

Limited Liability Sentence Examples

  • It has been decided in the law courts that a limited liability company is not a person in the eye of the law, and therefore does not come under the operation of the act of 1868.

  • Soon after the conclusion of peace important changes were made in the legislation concerning industry and commerce, and the new freedom thus accorded produced a large number of limited liability companies.

  • The principle of limited liability which this attitude assumed was soon found to be utterly untenable.

  • A charging order constitutes a lien on the judgment debtor 's limited liability company interest.

  • State law also now allows for perpetual duration of a limited liability company existence.

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