Provisions of the Regulating Act

Provisions of the Regulating Act

(1) The Regulating Act gave the right of vote for the election of Directors of the Company to shareholders holding stock worth 1000 pound for 12 months preceding the date of election. Formerly, Directors were elected for one year but the Act provided that in future they were to be elected for 4 years. However, one-fourth of them were to retire every yer. The Directors were required to submit copies of letters and advice received from the governor-General-in-Council. Copies of letters relating to revenue were to be sent to the Treasury and those relating to civil and military affairs were to be sent to one of the Secretaries of State. Governor-General of Bengal and the Governor of Bombay and Madrasa were required to pay due obedience to the orders of the Directors and also Keep them constantly informed of all the matters affecting of the interests of the Company.

(2) Provision was made for a Governor-General of Bengal and his Council of 4 members. They were vested with “the whole civil and military Government of the said Presidency, and also the ordering, management and government of territorial acquisitions and revenues in the kingdom of Bihar Bengal and Orissa. Warren Hastings was appointed the first Governor-General of Bengal and Clavering, Monsan, Philip Francis and Barewell were appointed the members of his council. Members of the Council were to hold office for 5 years and they could not be removed except by Crown on the representation of the Directors. Governor-General of Bengal was required to carry on the work according to the majority opinion of this Council. He could not over-rule the majority view of this Council. However, he was given a casting vote in the case of a tie. Governor-General was also given the power of superintending and controlling the Presidencies of Madras and Bombay. However, in case of emergency and direct orders from the Directors in London, Presidencies of Madras and Bombay were not to act according to the orders of the Governor-General of Bengal.

(3) Governor-in-Council of Bombay and Madras were required to pay due obedience to the orders of Governor-General of Bengal. They were required to submit to the Governor-General-in-Council advice and intelligence on transactions and matters relating to the government, revenues and interests of the Company. They were required to forward all rules and regulations framed by them to the Governor-General-in-Council, or did not perform their duties properly, they could be suspended by the Governor-General-in-Council.

(4) Governor-General-in-Council was given the power to make rules, ordinance and regulations for the good order and civil government of Company’s settlement at Fort William and factories and places subordinate to it. These rules and regulations were not to be against the laws of England and were required to be registered with the Supreme Court. These could be disallowed by the king-in-council within two years.

(5) The Regulating Act provided for a Supreme Court with a Chief justice and three puisne judges. Sir Elijah Impey was appointed the Chief Justice. The Supreme Court was given the power to try civil, criminal, admiralty cases. It was to be a Court of Record and Court of Oyer and Terminer and Gaol delivery in and for the town of Calcutta, Fort William and other factories subordinate to it. The jurisdiction of the Supreme Court was to extend to all the British subjects residing in Bengal, Bihar and Orissa. It was empowered to try all cases of complaints against any of His Majesty’s subjects for crimes or oppressions. It was to try suits, complaints or actions against any person in the employment of the Company or His Majesty’s subjects. It was given both original and appellate jurisdiction. Cases were to be tried by means of a jury.

(6) The Regulating Act prohibited the receiving of presents and bribes by the servants of the Company. “No person holding or exercising any civil or Military office under the Crown shall accept, receive or take directly or indirectly any present, gift, donation, gratuity or reward, pecuniary or otherwise.” It was made clear that the offenders were to make double payment and were liable to be transported to England.

(7) No British subject was to charge interest at a higher than 12 per cent. If the Governor-General, governor, Member of the Council, a judge of Supreme Court or any other servant of the Company committed any offence he was liable to be tried and punished by the king’s Bench in England. The act also settled the salaries of the Governor-General, governor, Chief Justice and other Judges. Thus, Governor-General was to get 25000 Pound annually. Every member of the Council was given 10000 pound a year. The annual salary of the Chief Justice was fixed at 8000 pound and that of an ordinary judge 6000 pound.

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