What does the term "limited liability" mean in relation to a company?

Members are only liable for debts up to their shareholding

"Limited liability" refers to the concept that the liability of the members (shareholders) of a company is limited to the extent of the unpaid amount on their shares. This means that if a company incurs debts or faces financial liabilities, the shareholders' personal assets are not at risk beyond the amount they have invested in the company by purchasing shares. In other words, the personal assets of the shareholders are protected in case the company faces financial difficulties, and they are not held responsible for the company's debts or obligations beyond their initial investment. This limited liability feature is one of the fundamental advantages of investing in a company, as it provides a level of financial security to shareholders.