Legal status where a person's financial liability is limited to a fixed sum, most commonly the value of a person's investment in a corporation, company or partnership.- Limited liability
178 related topics
In law, liable means "responsible or answerable in law; legally obligated".
In commercial law, limited liability is a method of protection included in some business formations that shields its owners from certain types of liability and that amount a given owner will be liable for.
Business entity in which shares of the company's stock can be bought and sold by shareholders.
In modern-day corporate law, the existence of a joint-stock company is often synonymous with incorporation (possession of legal personality separate from shareholders) and limited liability (shareholders are liable for the company's debts only to the value of the money they have invested in the company).
Body of law governing the rights, relations, and conduct of persons, companies, organizations and businesses.
Under corporate law, corporations of all sizes have separate legal personality, with limited or unlimited liability for its shareholders.
Organization—usually a group of people or a company—authorized by the state to act as a single entity and recognized as such in law for certain purposes.
Registered corporations have legal personality recognized by local authorities and their shares are owned by shareholders whose liability is generally limited to their investment.
Legal decision to treat the rights or duties of a corporation as the rights or liabilities of its shareholders.
Despite the terminology used which makes it appear as though a shareholder's limited liability emanates from the view that a corporation is a separate legal entity, the reality is that the entity status of corporations has almost nothing to do with shareholder limited liability.
Partnership in which some or all partners (depending on the jurisdiction) have limited liabilities.
In an LLP, some or all partners have a form of limited liability similar to that of the shareholders of a corporation.
Form of partnership similar to a general partnership except that while a general partnership must have at least two general partners (GPs), a limited partnership must have at least one GP and at least one limited partner.
Like shareholders in a corporation, limited partners have limited liability.
Political philosophy that advocates the abolition of centralized states in favor of a system of private property enforced by private agencies, free markets and the right-libertarian interpretation of self-ownership, which extends the concept to include control of private property as part of the self.
Rothbard argues that limited liability for corporations could also exist through contract, arguing that "[c]orporations are not at all monopolistic privileges; they are free associations of individuals pooling their capital. On the purely free market, those men would simply announce to their creditors that their liability is limited to the capital specifically invested in the corporation".
The Joint Stock Companies Act 1844 (7 & 8 Vict.
However, there was still no limited liability and company members could still be held responsible for unlimited losses by the company.
The Limited Liability Act 1855 (18 & 19 Vict c 133) was an Act of the Parliament of the United Kingdom that first expressly allowed limited liability for corporations that could be established by the general public in England and Wales as well as Ireland.