Question

Where the court of Directors was created under the Regulating Act?
A. London
B. Madras
C. Mumbai
D. Calcutta

Answer 1

Hint: This question is related to constitutional, administrative and judicial development in India under British rule. The regulating act brought about the involvement of the British government in Indian affairs.

Step by step answer:
 The Regulating Act of 1773 also known as the East India Company Act of 1772, was brought by the British Parliament in order to control and regulate the functioning of East India Company. This act was introduced by Lord North on 18 May 1773. It recognized that the company's role in India is much beyond mere trade. It extended to administrative and political fields and introduced the concept of centralized administration. Under the Regulating Act of 1773, the executive body of East India Company, the Court of Directors was introduced. It was headquartered at the Leadenhall street in London. Both, East India Regulating Act of 1773 and Pitts’s India Act, 1784 limited the powers of shareholders over the Court of Directors. Their control was shifted to a parliamentary committee called the Board of Control. There were 24 members in the Court of Directors, they were elected individually for 4 years. The members worked full time in their respective committees. The Court of Directors was abolished under the charter act of 1853 and the services were now open to a competitive examination. By 1773, the East India Company was under financial crises. This was due to rampant corruption among servants of the company, who made full use of private trading to enrich themselves, this led to companies’ bankruptcy. So, the British government decided to regulate the company for its better functioning and to bring some order into its business.

So, the correct answer is Option A

Note This is the first time the British Government was given the right to exercise control over Indian affairs. Governor of Bengal was now elevated to Governor-General of Bengal, the presidencies of Madras and Bombay came under Bengal’s control.