Section 510: Protection for secured or preferential creditor.

(1) An administrator’s statement of proposals under section 486 of this Act does not include any action which—
(a) affects the right of a secured creditor of the company to enforce his 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 his 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 this Part, but without prejudice to section 714 of this Act;
(c) a proposal for a scheme of arrangement and compromise or reconstruction to be sanctioned under relevant Parts of the Act; or
(d) a proposal for a cross-border merger within the meaning of relevant legislation, including but not limited to the Investments and Securities Act.
(3) The reference to a statement of proposals in subsection (1) includes a reference to a statement as revised or modified.