Pitt's India Act
Encyclopedia
The East India Company Act 1784, also known as Pitt's India Act, was an Act
Act of Parliament
An Act of Parliament is a statute enacted as primary legislation by a national or sub-national parliament. In the Republic of Ireland the term Act of the Oireachtas is used, and in the United States the term Act of Congress is used.In Commonwealth countries, the term is used both in a narrow...

 of the Parliament of Great Britain
Parliament of Great Britain
The Parliament of Great Britain was formed in 1707 following the ratification of the Acts of Union by both the Parliament of England and Parliament of Scotland...

 intended to address the shortcomings of the Regulating Act of 1773
Regulating Act of 1773
The Regulating Act of 1773 was an Act of the Parliament of Great Britain intended to overhaul the management of the East India Company's rule in India...

 by bringing the East India Company's rule in India
Company rule in India
Company rule in India refers to the rule or dominion of the British East India Company on the Indian subcontinent...

 under the control of the British Government. Pitt's India Act provided for the appointment of a Board of Control
President of the Board of Control
The President of the Board of Control was a British government official in the late 18th and early 19th century responsible for overseeing the British East India Company and generally serving as the chief official in London responsible for Indian affairs. The position was frequently a cabinet...

, and provided for a joint government of British India by both the Company and the Crown
The Crown
The Crown is a corporation sole that in the Commonwealth realms and any provincial or state sub-divisions thereof represents the legal embodiment of governance, whether executive, legislative, or judicial...

.

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 East India Company. The Act set up a system whereby it supervised (regulated) the work of the East India 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.

Provisions of the 1784 Act

A governing board was constituted with six members, two of whom were members of the British Cabinet and the remaining from the Privy Council. The board also had a president
President of the Board of Control
The President of the Board of Control was a British government official in the late 18th and early 19th century responsible for overseeing the British East India Company and generally serving as the chief official in London responsible for Indian affairs. The position was frequently a cabinet...

, who soon effectively became the minister for the affairs of the East India Company. The board had power and control over all of 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, and the governor-general was authorised to veto the majority decisions. The governors of Bombay and Madras were also deprived of their independence. Calcutta was given greater powers in matters of war, revenue and diplomacy; thus becoming in effect the administrative capital of company possessions in India.

By a supplementary Act passed in 1786 Lord Cornwallis was appointed as the second governor-general, 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
Government of India Act 1858
The Government of India Act 1858 is an Act of the Parliament of the United Kingdom passed on August 2, 1858. Its provisions called for the liquidation of the British East India Company and the transference of its functions to the British Crown...

.

Further reading

  • Holden Furber, "The East India Directors in 1784," Journal of Modern History Vol. 5, No. 4 (Dec., 1933), pp. 479-495 in JSTOR, reprints primary sources
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