For political matters, the Board of Control was created and for commercial affairs, the Court of Directors was appointed.
- The Board of Control took care of civil and military affairs. It comprised of 6 people:
- Secretary of State (Board President)
- Chancellor of the Exchequer
- Four Privy Councillors
- In this dual system of control, the company was represented by the Court of Directors and the British government by the Board of Control.
- The act mandated that all civil and military officers disclose their property in India and Britain within two months of their joining.
- The Governor-General’s council’s strength was reduced to three members. One of the three would be the Commander-in-Chief of the British Crown’s army in India.
- The Governor-General was given the right of veto.
- The Presidencies of Madras and Bombay became subordinate to the Bengal Presidency. In effect, Calcutta became the capital of the British possessions in India.
- This act made a distinction between the commercial and political activities of the East India Company.
- For the first time, the term ‘British possessions in India’ was used.
- This act gave the British government direct control over Indian administration.
- The Company became subordinate to the British government unlike as in the previous Regulating Act of 1773, where the government only sought to ‘regulate’ matters and not take over.
- This act established the British Crown’s authority in the civil and military administration of its Indian territories. Commercial activities were still a monopoly of the Company.
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