This Act divided and extended the power of the superintendence of the Board of Control. The act also stated the political functions of the British rulers in India. The Governor- General was given the authority to override the decision made the by the council under specific circumstances. The Governor-General got the authority to assign a Vice President under the circumstance of absence in the provenance of Bengal.
The Parliament of Britain passed the Charter Act 1793 that was also considered the East India Company Act 1793 which aims to renew the company’s charter in India for a period next 20 years. Based on the Act, the company was allowed to create a monopoly in Indian trade based on the licence issued by Britain only. It extended the measure of the Supreme Court’s jurisdiction in India.
Aspects of the Act
The Act allowed the company to extend the monopoly in the trading section regarding China in tea. The commercial shareholder presented a 10% of dividend from the generated revenue in India. Moreover, the Act allowed the sovereignty gained by Crown subjects is on behalf of the Crown and not in its own right, which ensured that the political activities of the company were carried by behalf of the government of Britain.
The political power of the company was reinforced with the application of the Act in India. The acquired territory of India by the EIC and future process of acquisition would be accomplished under the authority of the crown and not in its own right. The appointment procedure of Governors and Governor-General would a mandated subject to approval by the Royal of the Britain government. The followings are the provisions of the Act in India passed by the Parliament of Britain −
The dominance of the East India Company will remain and preserve the ruling period in India for the upcoming 20 years.
The Chief of EIC had reduced power to make commands based on specific situations.
The moment, a Governor-General was available in the Madras or Bombay, he would replace the authority over the governors of Madras and Bombay.
Vice-president was delivered the power of ruling in specific directions based on the presence of the Council if the Governor-General is not available in Bengal.
President and two junior members, who were not essential components of the Privy Council during the modification of the Board of Control,.
The Act provided that the staff salaries would be provided by charging from the company.
The generated revenue of the company is subject to a 10% dividend on a yearly basis.
The exploited treasure from India will be directed to Britain where EIC was allowed to drain wealth and raw material from India to Britain.
EIC was liable to pay annual revenue to the government of Britain after the deduction of the essential expenses including salaries, dividends, and expenses in India.
The Act authorised the company with the administration to bless licenses to individuals and employees of the company to maintain business in India.
This consequence made the shipments of opium to China.
The followings are the features of the Act −
The company was permitted to continue trade and have control over the British territories in India for the next 20 years.
The dividend amount of the EIC was permitted to rise by 10% yearly.
The political and administrative operations of the EIC would be operated on the behalf of the government of Britain.
The Governor-General can appoint a Vice President to maintain the political functionality in Bengal during his absence.
EIC was liable to send a monthly payment as they were allowed to trade in India.
The Act was published by the Parliament of Britain in 1793 and was encountered as the revolutionary moment in the constitutional and political history matter of Indian history.
The primary significance of the Act was found in the political exposure to the officials of the EIC in India.
The implication of the Governor-General’s elevation in Bengal was one of the significant actions for the centralisation of administrative power in India. The EIC face its demise as a retail entity effectively making it the crown's trustee in the administrative matter.
The consequence of the Act was not that beneficial for the EIC in terms of ruling in India. However, they got the chance to continue the trade practice and generate revenue from India. Additionally, with the application of this Act, senior officials of the Company were allowed to leave the country without seeking any permission. The legislative authority of the Governor-General was introduced in the Council with some additional powers.
The Act made some favours to EIC by remaining the trade authority in pan India, especially in Bengal during the absence of the Governor-General was the primary impulse employing the Charter Act of 1793. The policy that was written in the act, delivered a special power to Lord Cornwallis to appoint Governors-General to override his Council; however, they were not authorised to extend the Governors. The intention of appointing the Governor-General was primarily for Madras and Bombay followed by Bengal in the absence of the Governor.
Q.1. When and how the Charter Act was passed for the first time?
Ans. The Act was passed for the first time in 1973 and was passed by the Parliament of Britain. This Act provided a trading licence to the company for the next 20 years.
Q.2. What did the Act state about the authority of the Governors-General in India?
Ans. The Governor-General has the power to override the decision made by the Governors under some specific circumstance. They were also allowed to assign a Vice-president in their absence from Bengal.
Q.3. When was the Act revised?
Ans. The Act was revised after its first implication in 1813. This revision ended the monopoly of the EIC in trade practice.
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