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This Act gave the British Government a measure of control over the company’s affairs. In fact,
the company became a subordinate department of the State.
Act of 1786:
• Governor General given the power to over-ride the Council and was made the
Commander-in-chief also.
• Company deprived of its trade monopoly in India except in tea and trade with China.
• End of Company’s monopoly even in tea and trade with China. Company was asked to
close its business at the earliest.
• Governor General of Bengal to be Governor General of India (1st Governor General of
India was Lord William Bentinck).
• The Act renewed the powers of the Company and allowed it to retain the possession of
Indian territories in trust of the British crown.
• A post of Secretary of State (a member of the British cabinet) for India created. He
was to exercise the powers of the Crown.
• Governor General received the title of Viceroy. He represented Secretary of State and
was assisted by an Executive Council, which consisted of high officials of the Govt.
Indian Council Act, 1909 or Morley-Minto Act: It envisaged a separate electorate for
Muslims.
• Dyarchy was introduced at the Centre (Eg, Department of Foreign Affairs and Defence
were reserved for the Governor General). Provincial autonomy replaced Dyarchy in
provinces. They were granted separate legal identify.