1. Improvements in the constitution of the company The constitution of the company was improved by the Regulating Act. The term of the directors of the Company before this Act-1year, after this act-4 years 4years-directors could work efficiently 2. Centralization of authorities The Governor General and Council of Calcutta Presidency constituted the central executive authority. The civil and military govt. was vested in them Bombay & Madras were under the control and superintendence of the Governor General and Council in Calcutta in matters of war and peace Establishment of strong central government which could meet the Indian Princes or powers in the battlefield with united Armed Forces of the Companys Government. 3. British Governments Control over the Company The control made effective Directors of the Company were made responsible Obligatory for the directors of the company to place regularly before the Secretary of State all affairs of the Govt. in India, Companys correspondence and Revenue related matters. 4. Governor General & Councils power to make rules and regulations Can make rules for the good order of Civil Government of the Companys settlements at Calcutta and other subordinate factories and places Can make rules and regulations according to the local needs Check was put on this legislative powers Legislative powers under the supervision of the supreme Court 5. Establishment of the Supreme Court at Calcutta The Act authorized to establish Supreme Court at Calcutta Judges of the Court were expert in law Judicial administration was brought under the control of the professional lawyers Appointment and removal of the judges were not put in the hands of the company's executive authority. They were appointed by British Crown and they were to hold office during the Crowns pleasure The Act made the Supreme Court independent of the executive control This Court with wide jurisdiction It was empowered to superintend the Court of Collector, Court of Requests, Quarter Sessions Supreme Court was authorized to administer common law and equity both, whichever it thought better in the interest of justice The same authority to apply both laws, so less chances of conflicts. 6. Impartial Administration Fair and impartial administration in the companys settlements in India Express provisions relating to prohibition on acceptance of presents, donations, gifts or rewards-for Governor General, Councilors, Judges of the Supreme Court, Civil and Military officers Prohibition on Private Trade Defects of Regulating Act Uncertainty was the main defect The extent of the powers of the Governor General and Council was uncertain Extent of the jurisdiction of the Supreme Court under the Act was uncertain Relation between the Governor General and Council and the Supreme Court was uncertain Relation between the Adalats in Bengal, Bihar and Orissa and the Supreme Court was uncertain The Act failed to define the various terms used therein like Her Majestys subjects, British Subjects etc. 1. Defects relating to the composition of the Executive Decisions of the Council were taken by majority and the Governor General was allowed only casting vote. The Councilors sent from the England were suffering form the superiority complex and they were prejudiced against the Governor General Warren Hastings. A conflict between the Governor General and his Council arose. Since the majority was against the Governor General, Warren Hastings, he found it very difficult to take decisions on policy matters Efficiency of the executive was lessened due to this conflicts 2. Uncertainty Uncertainty as to the relation between the Governor General and his Council of the Calcutta Presidency and the Governors and their councils of other presidencies The term imminent necessity was not defined 3. Uncertainty as to the legislative powers It was not made clear whether or not the rules and regulations so made by the Governor General and Council were to applied to the territories of Bengal, Bihar and Orissa As Regards Calcutta, the Rules could be made because it was under the British Sovereignty. But the Power to make rules and regulations for the terrtories of the Bengal, Bihar and Orissa was a debatable issue. These territories were under the Mughal Sovereignty. Regulating Act was intentionally made vague. 4. Uncertainty as to the jurisdiction of the Supreme Court 1. Uncertainty as to the jurisdiction, powers, and position of the Supreme Court and its relation with the Governor General in Council and the Companys Adalats It failed to define with certainty the extent of the jurisdiction of the Supreme Court. it was stated that the Supreme Court would exercise its jurisdiction over all British subjects and all his Majestys subjects residing in Bengal, Bihar and Orissa and Persons employed by or directly or indirectly in the service of the Company or any of his Majestys subjects and also the inhabitants of the territories of Bengal, Bihar, and Orissa who voluntarily entered into contact with a subject of His Majesty to submit the disputes to the jurisdiction of the supreme court provided amount involved was more than Rs. 500