In a bid to rectify the defects of the Regulating Act of 1773, the British Parliament passed the Amending Act of 1781, and amending act of 1781 is also known as the Act of Settlement.
The next important act was the Pitt’s India Act of 1784.
Features of the Pitt’s India Act of 1784.
1. It distinguished between the commercial and the political functions of the Company.
2. It allowed Court of Directors to manage the commercial affairs but created a new body that is called Board of Control to manage the political affairs.
Thus, it established a system of the double government.
3. It empowered the Board of Control to supervise and direct all the operations of the civil and military government or revenues of the British possessions in India.
Thus, this act was significant for two reasons: first one , the Company’s
territories in India were for the first time called the ‘British possessions in India’; and second one is , the British Government was given the supreme control over Company’s affairs and its administration in India.
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