Section 590 of Insolvency Act CAP 53: Protection for secured and preferential creditors
(1) An administrator's statement of proposals under section 566 may not include action that— (a) affects the right of a secured creditor of the company to enforce the creditor's security;
(b) would result in a preferential debt of the company being paid otherwise than in priority to its non-preferential debts; or
(c) would result in one preferential creditor of the company being paid a smaller proportion of that creditor's debt than another.
(2) Subsection (1) does not apply to—
(a) action to which the relevant creditor consents;
(b) a proposal for a voluntary arrangement under Part IX;
(c) a proposal for a compromise or arrangement to be sanctioned under the Companies Act (Cap. 486); or
(d) a proposal for a cross-border merger.
(3) The reference to a statement of proposals in subsection (1) includes a reference to a statement as revised or modified.
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