It held that a clause stipulating the courts should not read long lists of objects as subordinate to one another was valid.

It is only relevant in an action against a director for breach of duty under section 171 for failure to observe the limits of their constitutional power.

Warrington LJ was sceptical that these objects clauses were intelligible to the public and wondered whether the registrar could refuse.

Lord Finlay LC relied on subclauses 8 and 12 to say that the company could deal in shares and it was clearly intra vires.

Lord Parker noted the argument that a company should be wound up on the ground that its substratum had failed, but dismissed it.