(1) This article applies where -

(a) the memorandum of association of a UK entity which is a company includes a statement of the amount of the entity's authorised share capital; and

(b) the resolution plan being drawn up for the entity or the group resolution plan being drawn up for the relevant group of which the entity is the UK parent undertaking or a group subsidiary includes provision for the application in respect of the entity of the stabilisation option referred to in paragraph (c) of section 1(3) of the Banking Act 2009 (the bail-in option).

(2) The Bank must determine whether it is appropriate to require the entity to alter the memorandum for the purpose of increasing the amount of authorised share capital or removing the statement of that amount.

(3) For this purpose the Bank must have regard to the provision which the plan concerned is to make in relation to resolution tools and resolution powers [For the meaning of "resolution action" see the recovery and resolution directive, Article 2.1, point (40).] and to the matters referred to in paragraphs (4) and (5).