Companies Act, 1956
Sec 202 - Undischarged insolvent not to manage companies.
(1) If any person, being an undischarged insolvent,
(a) discharges any of the functions of a director, or acts as or discharges any of the functions of the manager, of any company; or
(b) directly or indirectly takes part or is concerned in the promotion, formation or management of any company;
he shall be punishable with imprisonment for a term which may extend to two years, or with fine which may extend to fifty thousand rupees, or with both.
(2) In this section, " company " includes:
(a) an unregistered company ; and
(b) a body corporate incorporated outside India, which has an established place of business within India.