- the legislative and executive functions of the Governor-General’s council were separated.
- This act served as the foundation of the modern parliamentary form of government. The legislative wing of the Governor-General’s Council acted as a parliament on the model of the British Parliament.
- It extended the company’s rule for an indefinite period unlike the previous charter acts. Thus, it could be taken over by the British government any time.
- Company’s influence was further reduced by this act. The Board of Directors now had 6 members who were Crown-nominated.
- It gave birth to the Indian civil services and was open to all including Indians. This ended the system of appointments by recommendation and started a system of open and fair competition.
- For the first time, local representation was introduced into the legislative council in the form of four members from the local governments of Bengal, Bombay, Madras and North Western Provinces.
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