The Company became a subordinate department of the State. The Company’s territories in India were termed ‘British possessions’.
A Board of Control consisting of the chancellor of the exchequer, a secretary of state and four members of the Privy Council (to be appointed by the Crown) were to exercise control over the Company’s civil, military, and revenue affairs.
In India, the governor-general was to have a council of three (including the commander-in-chief), and the presidencies of Bombay and Madras were made subordinate to the governor-general.
Pitt’s India Act of 1784