What does limited liability mean for a shareholder?

Limited liability for a shareholder means that the shareholder's financial responsibility for the debts and obligations of the corporation is confined to the amount of their investment in the company. Essentially, shareholders are only liable to the extent of their investment in the company's shares—this is referred to as "full consideration for her shares." In simpler terms, if the corporation faces bankruptcy or incurs debt, the personal assets of shareholders cannot be used to satisfy corporate liabilities beyond what they have invested in the shares.

This principle encourages investment in corporations by limiting financial risk, as shareholders understand that they cannot lose more than what they have contributed to the corporation. The other options do not accurately reflect the concept of limited liability, as they imply greater personal financial exposure or restrictions on shareholder rights.