Question

Regulation act was passed in the year ______
A) 1793
B) 1773
C) 1763
D) 1783

Answer 1

Hint:
The regulating act is also known as the East India Company Act. It was an act passed in the parliament of Great Britain which was aimed towards the overhauling of the management in the East India Company’s rule in India. This was not a permanent solution to the company’s concern.

Complete step by step solution:
The Regulating Act was passed in 1773 by the British Parliament. This was because, in that year, the company was in a deep financial crisis. The British East India Company was an important asset to the empire of Britain because it had the monopoly of trade in India and the numerous shareholders in the company were very influential people.

The correct answer is option B. 1773.

Additional Information:
The Regulating Act of 1773 put a limit on the dividends of the company to 6 per cent until it had repaid the loan of 1.5 million pounds. This was the first step the British government took towards the regulation of the activities of the British East India Company. It also prevented any activities of bribery from the part of the company officials and servants. Warren Hastings was elevated to the title of Governor-General from Governor under this act.

Note:
Four additional people were named to serve with Governor-General Warren Hastings – Lieutenant General John Clavering, George Monson, Richard Barwell, and Philip Francis. Under this act, the supreme court was established. That was in Calcutta, at Fort William. The judges who were to administer the British Legal System in India were sent here from Britain.