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British Rule in EIC
British Rule in EIC
British Rule in EIC
company):
The East India Company Act 1784, also known as Pitt's India Act, was an Act
of the Parliament of Great Britain intended to address the shortcomings of the
Regulating Act of 1773 by bringing the East India Company's rule in India under the
control of the British Government. Pitt's India Act provided for the appointment of a
Board of Control, and provided for a joint government of British India by both the
Company and the Crown with the government holding the ultimate authority.
Background:
By 1773 the East India Company was in dire financial straits and asked for
assistance from the British Government. Faced with corruption and nepotism
amongst the company officials in India, the British Government enacted the
Regulating Act in 1773 to control the activities of the Company. The Act set up a
system whereby it supervised (regulated) the work of the Company but did not take
power for itself. The Act had proven to be a failure within a few years and the British
government decided to take a more active role in the affairs of the Company.
The Board was presided over by the president, who soon effectively became the minister for the
affairs of the East India Company. Section 3 of the Act provided that the President was to be the
Secretary of State, whom failing the Chancellor of the Exchequer, whom failing the most senior
of the other Commissioners.
The Act stated that the Board would henceforth "superintend, direct and control" the government
of the Company's possessions,[2] in effect controlling the acts and operations relating to the civil,
military and revenues of the Company.
The governing council of the Company was reduced to three members. The governors of
Bombay and Madras were also deprived of their independence. The governor-general was given
greater powers in matters of war, revenue and diplomacy.
By a supplementary act passed in 1786 Lord Cornwallis was appointed as the 2nd governor-
general of Bengal, and he then became the effective ruler of British India under the authority of
the Board of Control and the Court of Directors. The constitution set up by Pitt's India Act did
not undergo any major changes until the end of the company's rule in India in 1858.