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limited liability

Line breaks: limit¦ed li¦abil|ity

Definition of limited liability in English:

noun

[mass noun] British
The condition by which shareholders are legally responsible for the debts of a company only to the extent of the nominal value of their shares.
Example sentences
  • The new limited-liability laws made limited liability mandatory for all corporations.
  • The company's separate legal personality is a general feature of its legal status and is not confined to the areas of limited liability and transferable shares.
  • Owner enjoys limited liability for business debts and fringe benefits are deductible as business expenses.

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