The next important act was the Pitt’s India Act of 1784.
The features of this Act were as follows:
- It distinguished between the commercial and political functions of the Company.
- It allowed the Court of Directors to manage the commercial affairs, but created a new body called Board of Control to manage the political affairs. Thus, it established a system of double government.
- It empowered the Board of Control to supervise and direct all operations of the civil and military government or revenues of the British possessions in India.
Thus, the act was significant for two reasons: first, the Company’s territories in India were for the first time called the ‘British possessions in India’; and second, the British Government was given the supreme control over Company’s affairs and its administration in India.