What Is an Exculpatory Clause

What is an exculpatory clause?

A) A requirement that the company pay the legal fees of directors who are sued for actions taken on behalf of the company
B) A provision that if a party enters into a contract believing in good faith that the corporation exists, he cannot later take advantage of the fact that it does not
C) A requirement that a corporation cannot undertake any transaction unless the charter permits it
D) A provision that protects directors from personal liability to the corporation and its shareholders