Business Pitch Dictionary by pitch.dog
Company forms & group structures · Core

Limited liability

Also called: liability shield

ELI5

A rule generally limiting an owner's financial exposure to the amount invested or guaranteed, subject to law and exceptions.

Used in conversation

“Counsel wants limited liability clarified before anyone signs.”

Pitch context

You will see “Limited liability” in board papers, contracts, policies, risk registers and compliance reports when the discussion reaches company forms & group structures.

Why it matters: In company forms & group structures, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 3

Direct term-level sources and supporting source families.