It recognized that the Company’s role in India extended beyond mere trade to administrative and political fields, and introduced the element of centralized administration.
For the first time, the British cabinet was given the right to exercise control over Indian affairs.
In Bengal, the administration was to be carried out by the governor-general and a council consisting of 4 members, representing the civil and military government. They were required to function according to the majority rule.
A Supreme Court of judicature was to be established in Bengal with original and appellate jurisdictions.
The governor-general could exercise some powers over Bombay and Madras.
The Regulating Act of 1773