 Subjected the company’s actions to the supervision of the British Govt.

 End of dual government.

 Government of Bengal to be Governor-general of British territories of India.

 Establishment of supreme court in calcutta.

 The servants of the company were forbidden to engage in private trade, accept presents or bribes, etc.


 The commercial and political activities of the company were now separated. Board of control of six members (including two cabinet ministers) set-up to guide and supervise the affairs of the company in India.

 Three members will be there in Governor- general’s executive council.

 Madras and Bombay presidencies were subordinated to the Governor-general-in-council of Bengal in all matters.

 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.


 Expenses and salaries of the board of control to be charged on Indian revenue.

 The Governor-general and the Governors could now over-ride the decisions of their respective councils.

 All laws were to be translated in Indian languages.

 It laid the foundation of government by written laws, interpreted by courts.


 Company deprived of its trade monopoly in India expect in tea and trade with china. This made the company more of an administrative body. All Englishmen could trade with India subject to few restrictions.

 Further, christian missionaries were also permitted to come to India and preach their religion.


 End of company’s monopoly even in tea and trade with china. Company was asked to close its commercial business at the earliest.

 All restrictions on European immigration into Indian and acquisition of land and property in India by them were removed, legalizing European colonization of India.

 President of broad of control became the minister for Indian affairs.

 A law member (without power to vote) was added to the executive council of the Governor-general. (macaulay was the first law member). This increased the council’s strength to four.

 A law commission was constituted for condification of laws.

 The Act threw open to all, irrespective of religion, place of birth, decent and color, services under the company.


 The number of members of the court of directors was reduced from 24 to 18 of which 6 were to be nominated by the crown.

 Legislation was treated for the first time as separate from executive functions.

 Recruitment to Civil Services was based on open annual competition examination (excluding Indians)


 Morley was the Secretary of State, while Minto was the Indian Viceroy.

 Legislative councils, both at the Centre and in the Provinces, were expanded.

 An element of election was also introduced in the Central Legislative Council.

 The most notable and retrogative change introduced was that Muslims were given separate representation. Thus, communal representation was introduced.


 Diarchy system introduced in the provinces. It was considered to be a substantial step towards transfer of power to the Indians. The provincial subjects of administration were to be divided into two categories: Transferred and reserved. The transferred subjects were to be administered by the Government with the aid of ministers responsible to the Legislative Council. The Government and the Executive Council were to administer the reserved subjects without any responsibility to the legislature.

 The provincial Legislative was to consist of one House only (Legislative Council).

 The number of Indians in Governor General’s Executive Council was raised to three in a Council of eight. The Indian members were entrusted with departments such s Law, Education, Labour, Health and industries.

 The centre was now to have a bicameral Legislative for the first time. It actually happened after 1935 Act.

 Communal representation extended to Sikhs, Christians, Anglo Indians, etc.

 Secretary of State to be henceforth paid salary out of the British revenue.


 Provided for the establishment of All-India Federation consisting of the British province and the princely States. The joining of principle States was voluntary and as a result the federation did not come into existence.

 Diarchy was introduced at the centre (e.g., department of Foreign Affairs and Defence were reserved for the Governor-general).the other Federal subjects were to be administered by the Governor-general with the assistance and advice of a Council of Ministers to be chosen by him (but to include representatives of Princely States and minorities, and to be responsible to the central Legislature). Residuary power were to be with the Governor-general only.

 The Governor was the head of the provinicial executive and was expected to be guided by the advice of the popular ministries. However, the Act gave arbitrary powers to be Governors to act in their ‘discretion’ in certain matters.

 The Act also provided for a Federal Court (which was established in 1937), with original and appellate powers) to interpret the constitution. A Federal Bank (The Reserve Bank of India) was also established. The Indian council of Secretary of State was abolished.

 Principle of separate electorate was extended include Anglo Indians, Indian Christians and Europeans.