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How did the Regulating Act of 1773 change British oversight of the East India Company in India?
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The Regulating Act of 1773 marked the first direct intervention by the British government in the territorial affairs of the East India Company, triggered by the company’s financial crisis and mismanagement in Bengal.12
The act introduced several key changes to oversight:
- Administrative Centralization: It established the office of governor-general of Fort William in Bengal, granting this official supervisory power over the presidencies of Madras and Bombay.12
- Governance Structure: The governor-general was supported by a council of four, though the lack of a veto power for the governor-general often led to executive paralysis. Additionally, a supreme court was established in Calcutta to administer English law.12
- London Oversight: To curb the influence of private interests, the act raised the qualification for voting in company elections and extended the terms of directors from one to four years, ensuring greater policy continuity.12
While the act was a significant step toward state control, it suffered from structural defects that necessitated further reform, eventually leading to William Pitt’s India Act of 1784.12