unlimited liability

unlimited liability
Full liability for the debt and other obligations of a legal entity. The general partners of a partnership have unlimited liability. Bloomberg Financial Dictionary
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When a promoter is fully liable for the debts of the business, it is called unlimited liability. London Stock Exchange Glossary

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unlimited liability unlimited liability liability

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   Where no restriction applies to an owner's losses in a business. In contrast with limited liability where the loss to owners, or shareholders, is limited by laws to the amount of capital they have invested.

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unlimited liability UK US noun [U] LAW, FINANCE
a situation in which the shareholders of a company are responsible for all of its debts if the company fails financially: unlimited liability for sth »

Partners have unlimited liability for the firm's debts.

Compare LIMITED LIABILITY(Cf. ↑limited liability)

Financial and business terms. 2012.

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Look at other dictionaries:

  • Unlimited liability — Full liability for the debt and other obligations of a legal entity. The general partners of a partnership have unlimited liability. The New York Times Financial Glossary * * * unlimited liability unlimited liability ➔ liability * * *    Where no …   Financial and business terms

  • Unlimited Liability — A type of business where owners share joint and several responsibility for the entire amount of debt and other liabilities amassed by the business. Unlimited liability is not capped at a maximum amount and exists regardless of the amount of… …   Investment dictionary

  • Unlimited liability corporation — Unlimited Liability Corporations exist in two of Canada s 10 provinces Alberta (AULCs for Alberta Unlimited Liability Corporation) and Nova Scotia (NSULCs for Nova Scotia Unlimited Liability Company). Alberta Unlimited Liability Corporations… …   Wikipedia

  • Unlimited Liability Corporation - ULC — A corporate structure that permits a company to be incorporated and flow all profits and losses to shareholders. An unlimited liability corporation (ULC) shelters shareholders from liability in most circumstances except upon liquidation of the… …   Investment dictionary

  • unlimited liability — A liability to pay all the debts incurred by a business. For a sole proprietor or general partner, liability is not limited to the amount he or she has agreed to invest. All debts of the business must not only be paid out of the assets of the… …   Accounting dictionary

  • unlimited liability — A liability to pay all the debts incurred by a business. For a sole proprietor or general partner (see partnership), liability is not limited to the amount he or she has agreed to invest. All debts of the business must not only be paid out of the …   Big dictionary of business and management

  • unlimited liability — full legal responsibility, total liability …   English contemporary dictionary

  • unlimited liability — /ʌnˌlɪmɪtɪd laɪə bɪlɪti/ noun a situation where a sole trader or each partner is responsible for all a firm’s debts with no limit on the amount each may have to pay …   Marketing dictionary in english

  • unlimited liability — /ʌnˌlɪmɪtɪd ˌlaɪə bɪlɪti/ noun a situation where a sole trader or each partner is responsible for all a firm’s debts with no limit on the amount each may have to pay …   Dictionary of banking and finance

  • unlimited company — a species of registered company whose members have an unlimited liability for the debts of the company so that the personal fortune of members are at risk. This is balanced by certain advantages in that such companies do not have to deliver their …   Law dictionary

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