The first British Parliamentary law to regulate the affairs of the East India Company in India, marking the beginning of direct British government control over Company administration.
- Designated the Governor of Bengal as the Governor-General of Bengal, with an Executive Council of four members; Warren Hastings became the first Governor-General of Bengal (1774).
- Made the Governors of Bombay and Madras subordinate to the Governor-General of Bengal in certain matters, beginning administrative centralisation.
- Provided for a Supreme Court at Calcutta (established 1774) with a Chief Justice and three other judges; Sir Elijah Impey was the first Chief Justice.
- Prohibited Company servants from engaging in private trade and from accepting bribes or presents from Indians.
- Required the Court of Directors (the Company's governing body) to report on its revenue, civil, and military affairs to the British Government.
It is the starting point of constitutional development under British rule, and the "firsts" (first Governor-General of Bengal, first Supreme Court) are high-frequency objective facts.
It created the Governor-General of Bengal, not of India; the Governor-General of India came only with the Charter Act of 1833 (Lord William Bentinck the first).
1773: first step of British control; created Governor-General of Bengal (Hastings) and the Calcutta Supreme Court.