The Company’s territories in India, for the first time, called the ‘British possessions in India’, under the Pitts India Act of 1784.

Features of the Act:

1. It distinguished between the commercial and political functions of the Company.

2. It allowed the Court of Directors to manage the commercial affairs, but created a new body, called the Board of Control, to manage the political affairs. Thus, it established a system of double government.

3. It empowered the Board of Control to supervise and direct all operations of the civil and military government or revenues of the British possessions in India.