In the United Kingdom, a company with
limited liability amongst its owners; that is,
shareholders who are not liable for more than their
investment in case of
insolvency. In other words, an owner of a limited company would lose the value of his/her investment if the company declares bankruptcy, but would not be held liable for other outstanding
debts. A limited company is the most common
corporation structure in the United Kingdom and is designated by "Ltd" after its name.
There are two types of limited companies. A limited company by guarantee has no shareholders but instead contains members who contribute a small amount to cover outstanding debts following a potential
liquidation. This structure is common among British charities, and is used by the
Financial Services Authority. A public limited company usually (but not always) trades publicly, and shareholders are only liable for the value of their individual investments. These companies are designated by "p.l.c." See also:
Limited liability company,
U.S. Corporation.