What is shareholders limited liability.?

Shareholders' limited liability is a legal principle that protects individual investors from being personally responsible for a company's debts and obligations beyond their investment in the company's shares. This means that if a company faces bankruptcy or legal issues, shareholders can only lose the money they invested and are not liable for the company's financial obligations. This structure encourages investment by reducing personal financial risk for shareholders. Limited liability is a key feature of corporations and similar business structures.