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.
noun
1.
(Brit) 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

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

Note: 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.

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