Limited Liability
Limited liability is where an individual’s financial liability is limited against a set value, and is normally the actual value of that individuals investment into a company or partnership with limited liability.
If there was ever a situation where the limited liability company is sued, the owners and investors are protected. The shareholders of a limited company are not held accountable for any company debts, but their investment value into the company is. In certain situations where a director is also an actual shareholder of the company as well, the director can be liable where a company may require him/her to give a personal guarantee, this is referred to as co-signing.
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