limited company

A limited company is a company formed by incorporation, whereby the liability of the shareholders is limited to the paid up value of the shares held by them in the company. This is the nominal value of their shares but may limited to the sum of the guarantee given by the shareholders in a company limited by guarantee.  

This limited liability cannot be increased without shareholders' consent.

The most common form of company in the UK is a company limited by shares.

Usage: The subscribers decided to form a limited company.

Related Words: company; unlimited company; public company; private company; separate legal personality; corporate veil.