An example of a limited company?

In the UK, a private Limited Company is a separate legal entity in law. A company is registered by its owners at Companies House where a register of shareholders and Directors is kept. The company must have a director and a company secretary but the directors are only liable for the amount of money based on number of shares issued and the value per share, which could be just a few pounds

If the company fails, the directors lose this amount but are not liable for any debts incurred by the company in theory. In practise, the directors would be expected to offer personal guarantees to back up any borrowings made by the company. In the event of failure, the guarantees would therefore be called upon and the directors required to pay the debts in full.