Limited liability is a principle of modern statute law which
limits the responsibilities of shareholders in a partnership,
joint-stock company, etc. by the extent of their personal interest.
Personal interest refers to either the shares a person owns or
the amount of a membership. It includes unpaid amounts. Thus,
if a company or other corporate body is liable for something,
the amount any individual shareholder or member might have to
pay is the unpaid amount of their shares or membership. If paid
up, they might lose the amount of their shares or membership
if that has to be paid by the company to cover its liability.
