What Is an Exculpatory Clause

question 19

Multiple Choice

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

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