» It was enacted to improve upon the provisions of Regulating Act of 1773 to bring about better discipline in the Company's system of administration.
» A 6-member Board of Controllers was set up which was headed by a minister of the British Government. All political responsibilities were given to this board.
» Trade and commerce related issues were under the purview of the Court of Directors of the company.
» Provinces had to follow the instructions of the Central Government, and Governor General was empowered to dismiss the failing provincial government.