Prohibition on appointment of managing directors when person is undischarged insolvent, has suspended payments, or convicted of moral turpitude. No company may appoint, employ, or continue as a managing or whole-time director any person who is an undischarged insolvent or has been adjudged insolvent, who suspends or has suspended payments to creditors or has made a composition with them, or who is or has been convicted of an offence involving moral turpitude.