The Regulating Act, 1773

The Parliament passed its first important Act in 1773. called the Regulating Act to control the Company's Administration. The Act made changes in the constitution of the Company at home; the whole of the territories in India were subjected to some degree of control. 

The provision was made in a very efficient manner for the government to keep supervision over the Company. Changes were made in the Constitution of the Court of Directors of the Company. It was required that it should submit to the Government all communications about civil and military affairs received from Bengal and revenues of India. 

In the field of executive government. the status of Governor of Bengal was raised to Governor General. His Council would consist of four members. The Governor General in Council was given the power to superintend and control the presidencies of Madras and Bombay in matters of war and peace. In this body was vested the civil and military administration of the presidency, and government of all the territorial acquisitions and revenues in the kingdoms of Bengal. Bihar and Orissa. 

The Governors of Madras and Bombay were required to send regularly. to the Governor General, information connected with government, revenues. or interests of the Company. The Governor General in turn was under the direct control of Court of Directors and kept it fully informed of the affairs concerning the interests of the Company. The Act also provided for the establishment of a Supreme Court of Justice at Calcutta to give justice to Europeans, their employees and citizens of Calcutta. Legislative powers were granted to the Governor General and Council to make rules, ordinances and regulations for the civil government of Fort William and subordinate factories. 

The Regulating Act did not work smoothly in practice. Its defects and weaknesses were exposed when it was put to working. Supervision of the British government was ineffective. The Governor General had to face the opposition of his council, who united against him. He had no power to override them, though in case of an equal division he had a casting vote. Disunity of the Council prevented it from solving external and internal problems of a serious nature. They had to often face deadlocks which impeded smooth working of the administration. The President of Madras arid Bombay were under the general controlling power of the Governor General and Council proved inefficient in actual working.