(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 ¹[* * *] 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 ²[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.

1. The words "managing agent, secretaries and treasurers, or" omitted by Act 53 of 2000, sec. 88 (w.e.f. 13-12-2000).

2. Subs. by Act 53 of 2000, sec. 88, for "five thousand rupees" (w.e.f. 13-12-2000).