Limited company

Abbreviation for Limited liability company. In a limited liability company the liability of the members is restricted to a predefined amount.

In the case of a company limited by shares the members' liability is restricted to the amount, if any, unpaid on the shares they hold. Most commercial companies are of this type.

In a company limited by guarantee the liability of the members is restricted to a predefined amount which the members guarantee to contribute (on the event of any winding up of the company).

See also

• Limited liability
• Unlimited company