The act was passed to correct the defects of the regulating act. This act resulted in dual control of British possessions in India by the British government and the Company with the final authority resting with the government. This act remain in operation till 1858.
Provisions of the act:
- Board of control for political matters and Court of directors for commercial matter.
- BoC Consists of 6 members: Secretary of state, Chancellor of the exchequer, Four Privy council.
- Company was represented by the Court of Directors and the British government by the Board of control.
- Governor-General council strength was reduced to three members. One of the three would be commander-in-chief of the British Crown’s army in India. Governor general was given the veto power.
- The presidencies of Madras and Bombay became subordinate to Bengal Presidency.
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