Company Rule Acts 1773 to 1853: Provisions and PYQs
Notes on the Acts of Company rule for exams: Regulating Act 1773, Act of Settlement, Pitt's India Act and the Charter Acts of 1793, 1813, 1833 and 1853.
By GK24 Editorial Team· Published · 4 min read
Between 1773 and 1853 the British Parliament passed a series of Acts that slowly took the government of India out of the hands of a trading company and brought it under the Crown. Each Act answered a complaint of its own time: corruption in Bengal, the Company's monopoly, the demand of missionaries and manufacturers, the need for one law-making authority. For examinations this is one of the highest-yielding chapters of modern Indian history, because every Act carries two or three facts that can be asked directly: the office it created, the body it set up, the monopoly it ended and the officer who held the post first.
Why Parliament stepped in
After the Battle of Buxar in 1764 and the grant of the Diwani of Bengal, Bihar and Orissa in 1765, the East India Company became the revenue collector of a vast territory while remaining a commercial company answerable to its shareholders. The Bengal famine of 1770, the enormous private fortunes made by its servants and the Company's own request for a loan from the British government convinced Parliament that a trading body could not be left to rule a country. The Regulating Act of 1773 was the result, and every later Act built on it.
The Acts, one by one
| Act | What it did | Fact most asked |
|---|---|---|
| Regulating Act, 1773 | First step of Parliament to control the Company; the Governor of Bengal became the Governor-General of Bengal with an Executive Council of four; Bombay and Madras were made subordinate to Bengal; a Supreme Court was provided at Calcutta; servants of the Company were forbidden private trade and presents; the Court of Directors had to report revenue, civil and military affairs to the British government | Warren Hastings was the first Governor-General of Bengal |
| Amending Act, 1781 (Act of Settlement) | Settled the quarrel between the Supreme Court and the Governor-General-in-Council; exempted the Governor-General, the Council and the Company's servants from the Court's jurisdiction for official acts; directed the Court to decide according to the personal law of the parties; made appeals from provincial courts lie to the Governor-General-in-Council | Called the Act of Settlement |
| Pitt's India Act, 1784 | Separated the Company's commercial and political functions; left trade with the Court of Directors and created a Board of Control for civil, military and revenue affairs; the Company's territories were for the first time called the British possessions in India | Began the system of double government |
| Charter Act, 1793 | Extended the Company's trade monopoly for twenty years; gave the Governor-General power to override his Council; the Commander-in-Chief ceased to be a member of the Council unless specially appointed; salaries of the Board of Control were charged on Indian revenues | Governor-General's overriding power |
| Charter Act, 1813 | Ended the Company's monopoly of Indian trade, keeping only the tea trade and trade with China; permitted Christian missionaries to come to India; set aside one lakh rupees a year for education and the revival of literature; asserted the sovereignty of the Crown over the Company's Indian territories | One lakh rupees for education |
| Charter Act, 1833 | The final step in centralisation: the Governor-General of Bengal became the Governor-General of India with all civil and military powers; Bombay and Madras lost their legislative powers; the Company became a purely administrative body; a Law Member was added to the Council and a Law Commission was set up | Lord William Bentinck was the first Governor-General of India; Macaulay the first Law Member |
| Charter Act, 1853 | Separated the legislative and executive functions of the Governor-General's Council by adding six legislative members, so that a distinct Indian (Central) Legislative Council began to work like a small parliament; introduced open competition for the civil service; continued the Company's rule without naming a term; brought in local representation through members from Bengal, Madras, Bombay and Agra | Open competition and the first legislative council |
The thread running through the Acts
- Centralisation: 1773 put Bengal above the other presidencies, 1793 put the Governor-General above his Council, and 1833 put one Governor-General over the whole of India.
- Parliamentary control: 1773 asked for reports, 1784 created the Board of Control, 1813 declared the sovereignty of the Crown, and 1833 reduced the Company to an agent of the Crown.
- End of monopoly: renewed in 1793, broken for Indian trade in 1813, ended altogether in 1833, after which the Company's commercial life was over.
- Beginnings of modern government: written regulations from 1793, a Law Member and codification from 1833, a separate legislature and a competitive civil service from 1853. The Government of India Act of 1858 completed the process by abolishing the Company and transferring its powers to the Crown.
Dates and firsts to memorise
- Regulating Act 1773; Supreme Court at Calcutta set up in 1774 under it, with a Chief Justice and three other judges.
- Amending Act 1781; Pitt's India Act 1784; Charter Acts of 1793, 1813, 1833 and 1853, that is, one every twenty years.
- First Governor-General of Bengal: Warren Hastings, 1773. First Governor-General of India: Lord William Bentinck, 1833.
- First Law Member of the Governor-General's Council and first Chairman of the Law Commission: Lord Macaulay, from 1834.
- The Act of 1853 was the last of the Charter Acts; the next great statute, the Government of India Act of 1858, ended Company rule and created the office of Viceroy, first held by Lord Canning.
Exam Point of View
Examiners ask this chapter as a one-fact question: which Act created which office or body, and who held it first. The pairs most often tested are 1773 with the Governor-General of Bengal and Warren Hastings, 1784 with the Board of Control and double government, 1813 with the end of the trade monopoly and the lakh of rupees for education, 1833 with the Governor-General of India, Bentinck, Macaulay and the Law Commission, and 1853 with the separate legislative council and open competition. The usual traps are 1772 in place of 1773 for Hastings, confusing the Governor-General of Bengal with the Governor-General of India, and crediting the 1833 Act with the open competition that the 1853 Act actually introduced.
Important Facts
| Regulating Act | 1773, first parliamentary control over the East India Company |
|---|---|
| First Governor-General of Bengal | Warren Hastings, 1773 |
| Supreme Court at Calcutta | Set up 1774 under the Regulating Act; first Chief Justice Sir Elijah Impey |
| Act of Settlement | Amending Act of 1781 |
| Pitt's India Act | 1784, created the Board of Control and double government |
| Charter Act 1793 | Governor-General given power to override his Council |
| Charter Act 1813 | Trade monopoly ended except tea and China trade; one lakh rupees a year for education |
| Charter Act 1833 | Governor-General of India created; Bombay and Madras lost legislative powers |
| First Governor-General of India | Lord William Bentinck, 1833 |
| First Law Member | Lord Macaulay, 1834, also first chairman of the Law Commission |
| Charter Act 1853 | Legislative and executive functions separated; open competition for the civil service |
| End of Company rule | Government of India Act, 1858; Lord Canning became the first Viceroy |
Practice MCQs on this topic
Warren Hastings became the first Governor General of Bengal in ______.
- A.1772
- B.1778
- C.1775
- D.1773
Show answer
The Regulating Act of 1773 changed the designation of the Governor of Bengal to Governor-General of Bengal and created an Executive Council of four members to assist him, and Warren Hastings, who had been Governor of Bengal since 1772, became the first holder of the new office.
Read the full explanation →Which Act of the British Parliament created the office of the Governor-General of Bengal?
- A.Regulating Act, 1773
- B.Pitt's India Act, 1784
- C.Charter Act, 1813
- D.Charter Act, 1833
Show answer
It was the first attempt by the British Parliament to regulate the affairs of the East India Company: it redesignated the Governor of Bengal as the Governor-General of Bengal, gave him a Council of four, made Bombay and Madras subordinate to him and provided for a Supreme Court at Calcutta.
Read the full explanation →The Board of Control, which supervised the civil, military and revenue affairs of the Company's Indian territories, was set up by which Act?
- A.Regulating Act, 1773
- B.Amending Act, 1781
- C.Pitt's India Act, 1784
- D.Charter Act, 1793
Show answer
The Act separated the commercial and the political functions of the East India Company, leaving trade to the Court of Directors and placing civil, military and revenue administration under a newly created Board of Control answerable to Parliament.
Read the full explanation →Which Act ended the East India Company's monopoly of trade with India, leaving it only the tea trade and the trade with China?
- A.Charter Act, 1793
- B.Charter Act, 1813
- C.Charter Act, 1833
- D.Charter Act, 1853
Show answer
Pressed by British manufacturers who wanted a free market in India, Parliament threw Indian trade open to all British subjects and allowed the Company to keep only the tea trade and the trade with China.
Read the full explanation →The Governor-General of Bengal was made the Governor-General of India by which Act?
- A.Regulating Act, 1773
- B.Charter Act, 1813
- C.Charter Act, 1833
- D.Charter Act, 1853
Show answer
This Act was the final step in centralising British administration in India: it vested all civil and military powers in the Governor-General of India, took away the legislative powers of the Bombay and Madras governments, and made the East India Company a purely administrative agency holding its territories in trust…
Read the full explanation →Who was the first Law Member of the Governor-General's Council, appointed under the Charter Act of 1833?
- A.Lord Macaulay
- B.Lord Cornwallis
- C.Sir Elijah Impey
- D.Lord Dalhousie
Show answer
The Charter Act of 1833 added a fourth, law member to the Governor-General's Council for legislative work, and Thomas Babington Macaulay took up the post in 1834.
Read the full explanation →Which Act separated the legislative and executive functions of the Governor-General's Council for the first time?
- A.Charter Act, 1793
- B.Charter Act, 1813
- C.Charter Act, 1833
- D.Charter Act, 1853
Show answer
It added six new members to the Governor-General's Council for legislative purposes, so that law-making was carried on by a separate body which began to behave like a small parliament, with its own rules of business, and which is therefore regarded as the beginning of the Indian Legislative Council.
Read the full explanation →The Supreme Court at Calcutta, with a Chief Justice and three other judges, was established under which Act?
- A.Regulating Act, 1773
- B.Amending Act, 1781
- C.Pitt's India Act, 1784
- D.Charter Act, 1833
Show answer
The Act provided for the establishment of a Supreme Court at Calcutta, and the court was set up in 1774 with a Chief Justice and three other judges, Sir Elijah Impey being its first Chief Justice.
Read the full explanation →Which Act set apart one lakh rupees a year for the education of Indians and the revival of literature?
- A.Charter Act, 1793
- B.Charter Act, 1813
- C.Charter Act, 1833
- D.Charter Act, 1853
Show answer
The Act directed that a sum of not less than one lakh rupees be set apart every year for the revival and improvement of literature, the encouragement of the learned natives of India and the introduction and promotion of a knowledge of the sciences.
Read the full explanation →Open competition for recruitment to the covenanted civil service in India was introduced by which Act?
- A.Charter Act, 1813
- B.Charter Act, 1833
- C.Charter Act, 1853
- D.Government of India Act, 1858
Show answer
It ended the patronage of the Court of Directors over appointments and laid down that recruitment to the covenanted civil service would be by open competition, which was thrown open to Indians as well; the committee under Macaulay that framed the scheme reported in 1854.
Read the full explanation →Frequently Asked Questions
Who was the first Governor-General of Bengal and who was the first Governor-General of India?
Warren Hastings was the first Governor-General of Bengal under the Regulating Act of 1773, and Lord William Bentinck was the first Governor-General of India under the Charter Act of 1833.
What is meant by the double government introduced in 1784?
Pitt's India Act of 1784 left the Company's trade with the Court of Directors but placed civil, military and revenue administration under a Board of Control answerable to Parliament, so two authorities governed India together.
Which Act is called the Act of Settlement?
The Amending Act of 1781, which settled the conflict between the Supreme Court at Calcutta and the Governor-General-in-Council by limiting the court's jurisdiction and directing it to apply the personal law of the parties.
Why is the Charter Act of 1833 called the final step in centralisation?
Because it vested all civil and military powers in a single Governor-General of India, took away the legislative powers of Bombay and Madras, and left the Company as a purely administrative body holding India in trust for the Crown.
What did the Charter Act of 1853 do for the civil service?
It ended the Court of Directors' patronage and provided that recruitment to the covenanted civil service be by open competition, open to Indians as well; the scheme was framed by the Macaulay committee, which reported in 1854.
How many Charter Acts were passed and in which years?
Four, at intervals of about twenty years: 1793, 1813, 1833 and 1853. The Charter Act of 1853 was the last, after which the Government of India Act of 1858 ended Company rule.
Sources
- Themes in Indian History Part III (Class XII): colonialism and the making of British rule in India — NCERT
- Constitutional development in India: Acts of the British Parliament, 1773 to 1858 — Legislative Department, Ministry of Law and Justice
