Definitions from the Web
Term: Limited Liability
Description:
Limited liability refers to a legal concept that shields individual members or shareholders of a company from personal financial liability for the company's debts and obligations. It is commonly adopted by various business entities to protect the personal assets of its owners in case of business failure or legal actions.
Examples:
- As a noun:
- The limited liability of a corporation allows shareholders to limit their personal financial risks.
- Investing in a limited liability company (LLC) can provide individuals with protection from personal liability.
- As an adjective:
- Many small business owners prefer the limited liability structure as it separates personal and business finances.
- Individuals involved in a limited liability partnership (LLP) enjoy limited liability protection but also have management responsibilities.
- As a legal term:
- The limited liability clause in the company's bylaws ensured that the CEO's personal assets were not at risk.
- The court recognized the benefits of limited liability in protecting shareholders' personal finances.
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