The Company Rule (1773–1858)

Regulating Act of 1773

This act was of great constitutional importance as (a) it was the first step taken by the British Government to control and regulate the affairs of the East India Company in India; (b) it recognised, for the first time, the political and administrative functions of the Company; and (c) it laid the foundations of central administration in India.

1. It designated the Governor of Bengal as the “Governor-General of Bengal” and created an Executive Council of four members to assist him. The first such Governor-General was Lord Warren Hastings.
2. It made the governors of Bombay and Madras presidencies subordinate to the governor-general of Bengal, unlike earlier, when the three presidencies were independent of one another.
3. It provided for the establishment of a Supreme Court at Calcutta (1774) comprising one chief justice and three other judges.
4. It prohibited the servants of the Company from engaging in any private trade or accepting presents or bribes from the “natives”.
5. It strengthened the control of the British Government over the Company by requiring the Court of Directors to report on its revenue, civil, and military affairs in India.

Amending Act of 1781

To rectify defects in the Regulating Act of 1773, the British Parliament passed the Amending Act of 1781, also known as the Act of Settlement.

1. It exempted the Governor-General and the Council, as well as the Company’s servants, from the jurisdiction of the Supreme Court for their official actions.
2. It excluded revenue matters from the court’s jurisdiction.
3. It granted the Supreme Court jurisdiction over all inhabitants of Calcutta, applying personal laws for Hindus and Muslims respectively.
4. It stipulated that appeals from the Provincial Courts were to be taken to the Governor-General-in-Council instead of the Supreme Court.
5. It empowered the Governor-General-in-Council to frame regulations for the Provincial Courts and Councils.

Pitt’s India Act of 1784

This act distinguished between the commercial and political functions of the Company.

1. It allowed the Court of Directors to handle commercial affairs while creating a Board of Control for political oversight.
2. This established a system of dual governance for more effective administration.

Act of 1786

Appointed Lord Cornwallis as Governor-General with two key conditions:

1. Power to override council decisions in special cases.
2. Appointment as Commander-in-Chief.

Charter Act of 1793

1. Extended the overriding power to all future Governor-Generals.
2. Enhanced control over the subordinate presidencies of Bombay and Madras.
3. Extended the Company’s trade monopoly for another twenty years.
4. Defined the role of the Commander-in-Chief in relation to the Governor-General’s council.
5. Mandated payment for members of the Board of Control from Indian revenues.

Charter Act of 1813

1. Abolished the Company’s trade monopoly in India (except for tea and China trade), opening trade to all British merchants.
2. Asserted the British Crown’s sovereignty over the Company’s Indian territories.
3. Allowed Christian missionaries entry into India for enlightenment purposes.
4. Facilitated the spread of western education among Indians.
5. Empowered local governments to impose taxes and enforce penalties.

Charter Act of 1833

1. Transformed the Governor-General of Bengal into the Governor-General of India, centralizing all civil and military authority.
2. Stripped the governors of Bombay and Madras of their legislative powers, centralizing lawmaking with the Governor-General.
3. Ended the East India Company’s commercial role, establishing its territories as held in trust for His Majesty.
4. Attempted to introduce open competition in civil service recruitment (later modified).

Charter Act of 1853

1. Separated the legislative and executive functions by adding six legislative councillors, forming the Indian (Central) Legislative Council—a mini-Parliament.
2. Initiated an open competition system for recruiting civil servants, beginning the gradual opening of the civil service to Indians.
3. Extended the Company’s rule by allowing it to hold territories on trust for the British Crown without a fixed term.
4. Provided for local representation in the legislative council through appointments from provincial governments.