From Longman Dictionary of Contemporary Englishlimited liabilityˌlimited liaˈbility noun [uncountable] technicalSCL the legal position of being responsible for paying only a limited amount of debt if something bad happens to yourself or your company
Examples from the Corpus
limited liability• Hence a director of a company may stand to lose financially even though the company has limited liability.• If institutional investors are involved, the buy-out vehicle could be a limited partnership, to afford the institutions limited liability.• The most important legal aspect of the corporation is its limited liability.• There are three main alternatives: sole practitioner; partnership; or unlimited or limited liability company.• Because of the limited liability of shareholders, creditors had no redress.• The limited liability and perpetual life characteristics of the corporation make this form of organization almost mandatory for large firms.• Hence the fierce resistance among the professionals to limited liability.From Longman Business Dictionarylimited liabilityˌlimited liaˈbility [uncountable]LAWFINANCE when the owners of a limited liability company are only responsible for their company’s debts up to a certain amount if it goes out of business, and do not have to sell their personal assets to repay these debtsWhen he founded the company, he chose limited liability status because of the personal protection it gave him. → liability 