- first step by British govt. to control & regulate affairs of EIC.
- recognised first time, political & administrative functions of EIC
- laid foundations of central administration in India
- Designated Governor of Bengal as Governor General of Bengal
- Created Executive Council of 4 members to assist Governor General of Bengal.
- First GG of Bengal – Lord Warren Hastings
- Made Governors of Bombay & Madras subordinate to GG.
- Establishment of Supreme Court in Calcutta (1774) – 1 Chief Justice & 3 other judges, with original & appellate jurisdiction.
- Prohibited servants of Company engaging in private trade, accepting gifts, bribes from native Indians
- Court of Directors (governing body of EIC i.e. Directors of Company) to report on its revenue, civil & military affairs in India to British govt. So first time, British govt given right to exercise control over Indian affairs.
- In Bengal, administration to be carried out by Governor General and council of 4 members representing civil & military govt. They function according to majority rule.