Limited Liability Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Limited Liability, written in plain English, along with examples of how it is used.

What is Limited Liability?

Limited Liability is the limit up to which a person can be held responsible for any of his actions, non-actions or commitments and the consequential losses occurred to any person or entity. A typical example is the joint stock companies in which a shareholder is liable only to the extend of his unpaid shares in the event of bankruptcy of the company.