This article talks about Limited Liability, which is one of the biggest advantages of investing in publicly listed companies. It is the legal protection available to the shareholders of privately and publicly owned corporations under which the financial liability of each shareholder for the company’s debts and obligations is limited to the par value of his or her fully paid-up shares. Limited liability for insurance companies was allowed by the Companies Act 1862. The company itself, as a legal entity, is liable for the rest. Also called limited personal liability.