The liability of an owner or a partner of a company for no more capital than they have invested
A limit on the amount of money a company or individual can be made to pay in the event of legal action
The legal protection given to stockholders of a corporation A stockholder's liability extends only to the total of his capital contribution
When "limited" is at the end of a Canadian company's name, the company's shareholders' responsibility for the debts of the company is limited to the amount of money they paid to buy the shares In contrast, ownership of a company by a sole proprietor or partnership carries unlimited personal legal responsibility for debts incurred by the business
(p 137) The responsibility of business's owners for losses only up to the amount they invest; limited partners and shareholders have limited liability
An individual's exposure to legal liability is limited by creating a corporation for business transactions This is achieved by virtue of the corporation existing as an independent entity
When limited is at the end of a Canadian company's name, the company's shareholders' responsibility for the debts of the company is limited to the amount of money they paid to buy the shares In contrast, ownership of a company by a sole proprietor or partnership carries unlimited personal legal responsibility for debts incurred by the business
Where an entity can be sued, but enerally its owners cannot be held personally liable for debts or losses of the entity The classic limited liability entity is the corporation
the liability of a firm's owners for no more than the capital they have invested in the firm
The liability of a firm's owners for no more capital than they have invested in the business. the legal position of being responsible for paying only a limited amount of debt if something bad happens to yourself or your company. Condition under which the loss that an owner (shareholder) of a business may incur is limited to the capital invested in the business and does not extend to personal assets. The forerunners of limited-liability companies were limited partnerships, which were common in Europe and the U.S. in the 18th and early 19th centuries. In limited partnerships, one partner is entirely liable for losses and the other partners are liable only for the amounts they invested in the business. After the Joint-Stock Companies Act (1844) in England made incorporation easier, joint-stock companies with limited liability for all members became widespread. The development of the limited-liability company was crucial to the rise of large-scale industry in the late 19th and 20th centuries, since it enabled businesses to mobilize capital from a variety of investors who were unwilling to risk their entire personal fortunes in their investments. See also risk
The legal protection given stockholders whereby they are responsible for the debts and obligations of a corporation only to the extent of their capital contributions
limited liability is a legal obligation of a firm's owners to pay back company debts only with the money they have already invested in the firm
The nature of stocks restricts the amount of money an investor may lose to the amount they have invested in case of company bankruptcy Shareholders are not liable for the debts of the corporation
Limitation of shareholders' losses to the amount invested Means that stockholders of a corporation are not personally liable for the debts of the company
Limitation by a company’s memorandum of a member’s (shareholder’s liability to the amount, if any, unpaid on shares held by him (Section 5 Companies Act) The principle of limited liability is essential to the formation of a joint stock company