OCR Text |
Show "Limited." As the meaning of this word as applied to English corporations corpor-ations is not generally understood, the following definition may be of ioterost. In England thoy have a limited liability liabil-ity aot, by virtuo of which shareholders in a corporation are exempted from all liability for tho debts of an incorpor ation beyond tho sum of their shares-A shares-A bimilar law exists in many of our own Btatcs; but in England it is customary cus-tomary for subscribers to tho stock of a corporation to pay their subscriptions in installments, and undor the law they aro only bound for tho amount remaining unpaid. Hence tho use of tho terms "paid" or "unpaid" in their stock reports, as either shows the extent of tho liability of tho company. The term "limited" is simply used to denoto th-t tho shareholders of an incorporation in-corporation are only liable for its debts to tho amount of their unpaid subscriptions, sub-scriptions, as distinguished from incor porations on the old individual responsibility respon-sibility plan. |