The Regulating Act of 1773 reformed the governance of the British East India Company in India by establishing a Governor-General and Supreme Council to oversee Company affairs across India. It granted the Company a large loan for its financial troubles and required regular reporting to Parliament on correspondence and revenues. The Act aimed to curb corruption and abuses while asserting Parliament's control over the Company. It placed the presidencies of Bombay and Madras under the Governor-General's authority and gave legislative powers to the Governor-General and Council, subject to oversight. However, conflicts could arise from the split allegiance of Council members between the Company and Parliament.

1. The
Regulating
Act of 1773

2. Circumstances prior to Act
• The British Parliament and Company
• It became difficult for the British Parliament to
determine its relation with the Company
• An established principle of English
constitutional law was that no subject could
acquired the territories except for the
sovereign

3. Causes for taking over the company
• Public opinion against the co. gathered
momentum in England
• Corruption amongst the servant of co.
• Complication due to dual government
• Lack of proper judicial administration
• Deteriorating financial condition of the co.
• The co applied for the loan of one million
pounds in 1772

4. Appointment of Parliament Committees
• British parliament got an opportunity to tighten its hold
over the Co.’s affairs
• House of Common appointed two committees
• Select Committee and Secret committee
• With two motive mainly
1. To study the financial position
2. To uproot the corruption from the Administration and
Judiciary
•

5. As a consequences….
• After the submission of the report two acts
were passed by the parliament:
• Provisions of the first Act
1.Granted the Co. loan of 14,00,000 pounds at
4% interest
2.The Co. was forbidden to declare dividends
exceeding 6%
3.It was required to submit its account after
every 6 months to the treasury

6. Regulating Bill of Lord North
• On 18 May 1773 Lord North introduced the
Regulating Bill in the House of common
• It had three main objectives
• Reform the constitution of Co.
• Reform the Co.’s Government in India
• To provide remedy against the illegalities and
oppressions committed by the servants of the
co. in India

7. Salient Features of the Regulating Act
of 1773
• Election of the Director: The Director of the
co. elected for 4 years and 14 of them retired
every year and retiring Director was not
entitled to be elected again
• The effect of this provision was to secure
stability and continuity in the policy of
Directors

8. Control over the Correspondence
• In order to assert Parliament's control over
the co. the Directors were required to regularly
send all their correspondence regarding civil
and military affairs with Indian authorities
before the Secretary of State
• All the corresponding related to revenue of
India was required to place before the
treasury of England

9. Appointment of Governor General and
Council
• Act made alteration in the structure of the
Government of Co. in India
• Governor General and four councilors were
appointed
• The Governor of Bengal was designated as
Governor -General of Bengal

10. Control over the Bombay & Madras
• Both the presidencies placed under the control
and superintendence of the Governor General
and council

11. Extent of Gov-General’s Power
• It had given all the powers to govern the
Company’s territorial acquisition in India
• To administer the revenue of B.B.O.
• And to supervise and control the general
civil and military Government of the
presidency

12. Legislative power
• G. G. and Council had the right to make rules
ordinance for the better Govt. at Fort William
and subordinate factories
• This power was subjected to certain qualification
• They were required to be just and reasonable
• They will not considered until they were duly
registered in the SC

13. • Registration can be done only after expiration
of public notification open publication

14. Establishment of Supreme
Court
• Sec 13 of the Regulating act empower the
Crown to establish by charter SC of
Judicature at Calcutta
• Constitution, power and Jurisdiction of the
Court

15. Critical Estimate of the Regulating
Act
• Though the aims and object of the Act were
very good but certain defects came lime light.
• Reason ,
• Either due to inexperience of policy maker or
• Defective drafting

16. • Conflict between GG and Councilors
• 2 were from the company and 3 selected due
to their influence in parliament
• Newly elected were not in favour of GG
• Effected the efficiency of the working of the
council