Provisions of the Act

The Regulating Act reformed the Company’s Government at Home and in India. The important provisions of the Act were:

(i) The term of office of the members of the Court of Directors was extended from one year to four years. One-fourth of them were to retire every year and the retiring Directors were not eligible for re-election.

(ii) The Governor of Bengal was styled the Governor-General of Fort William whose tenure of office was for a period of five years.

(iii) A council of four members was appointed to assist the Governor-General. The government was to be conducted in accordance with the decision of the majority. The Governor- General had a casting vote in case of a tie.

(iv) The Governor-General in Council was made supreme over the other Presidencies in matters of war and peace.
(v) Provision was made in the Act for the establishment of a Supreme Court at Calcutta consisting of a Chief Justice and three junior judges. It was to be independent of the Governor- General in Council. In 1774, the Supreme Court was established by a Royal Charter.
(vi) This Act prevented the servants of the Company including the Governor-General, members of his council and the judges of the Supreme Court from receiving directly or indirectly any gifts in kind or cash.

Merits and Demerits of the Act

The significance of the Regulating Act is that it brought the affairs of the Company under the control of the Parliament. Besides, it proved that the Parliament of England was concerned about the welfare of Indians. The greatest merit of this Act is that it put an end to the arbitrary rule of the Company and provided a framework for all future enactments relating to the governing of India.

---