The success of trading activities in United Kingdom is attributed to the adoption of the limited liability concept in trading company formations. The concept of Limited Liability Company lets trade to flourish through enabling credit to be extended with minimum risk to the parties involved inside the company. In other words, the direct parties involved, which are the company’s shareholders, cannot be held liable for the debts of the company. Debtors cannot make any claims to a shareholder’s personal assets, thus only the shareholder’s interest or investment on that particular company is at risk.
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