 The East India Company’s last charter act was the one

from 1853. In contrast to preceding charter acts from

1793, 1813, and 1833, which extended the charter for 20
years, the Charter Act of 1853 reaffirmed the Company’s
authority and permitted it to keep the territories and
revenues of Indian lands in the trust of the Crown for an
unspecified amount of time.
 When the charter act of 1853 was passed, Lord
Dalhousie was the Governor-General of India. The
Charter Act of 1853 is extremely important since it
inaugurates India’s parliamentary system.
 Due to the court of directors and board of control’s attendance,
the delivery business has been delayed and overextended. The
British East India Company had previously acquired Sind and
Punjab as well as a number of other Indian states; therefore
there were territorial and political changes in India following
the Charter Act of 1833.
 Concerns were also expressed regarding the Governor-General
of India’s function as Governor of Bengal because it influences
some decisions in Bengal’s favor. Decentralization of power
and including the Indians in the running of their own affairs
were also demanded.
 The British parliament agreed to renew the East India
Company’s charter in 1853 based on the aforementioned
factors. The Company appointed two Committees to investigate
the Company’s affairs in the prior year. Their findings were
used to create and pass the Charter Act of 1853.
 The Company’s jurisdiction was restored by
the Charter Act of 1853, and it was given
permission to hold the properties and income
from Indian colonies in trust for the monarch.
However, unlike the earlier Charter Acts, this
one did not confer commercial privileges for a
set length of time.
 Finally, the executive and legislative branches of the Governor-
legislative General Council were separated. The contemporary
parliamentary system of government is based on this act. According
to the model of the British Parliament, the legislative branch of the
Governor-Council General’s served as a parliament.
 It extended the company’s authority indefinitely, unlike past charter
actions. As a result, the British government might take control at any
time. The company’s power was further reduced by doing this. The
Board of Directors now included six Crown nominees.
 It was accessible to everyone, including Indians, and gave rise to the
Indian civil services. As a result, the system of recommendations for
appointments was abolished, and a system of competitive hiring was
established. Four representatives from the local governments of
Bengal, Bombay, Madras, and North Western Provinces were the
first local representation to be added to the legislative council.
 1. Legislative Powers
 The executive and council functions of the Governor-legislative General
were divided for the first time. Six new legislative councilors, as they
were referred to, were to be added to the council. In other words, it
established a unique Governor General’s Legislative Council that was
later referred to as the Indian (Central) Legislative Council.
 The legislative part of the council operated like a miniature Parliament
and adhered to the same rules as the British Parliament. Legislation was
for the first time viewed as a separate government function requiring
particular tools and practices. The Governor-Council General’s was
required to follow the same legislative process as the British Parliament.
Members have the opportunity to discuss and raise questions about the
Executive Council’s policies.
 The Executive Council was granted the authority to veto any legislation
passed by the Council acting as its legislative body. The legislative
proceedings were open to the public, and the debate was oral. Bills
weren’t referred to specific members but rather to the Select Committee.
 2. Salary of the Members
 The Charter Act of 1853 stated that the Company would be
responsible for paying the salaries of the Board of Control
members, its Secretary, and other officers.
 3. Reduce in Number of Directors and their Power
 The number of court of directors members was decreased from
24 to 18, with 6 of those members must be proposed by the
Crown. By virtue of the Act of 1853, the Court of Directors lost
its patronage authority, and top positions became subject to
competitive examinations without regard to caste, creed, or
religion.
 This plan was put into effect by the Macaulay Committee, also
known as the Committee for the Indian Civil Service, in 1854.
It was permitted for the Court of Directors to elect a new
Presidency. According to the Act, the court of directors could
potentially change the borders of the current states and include
the newly acquired state. In the year 1859, a separate
Lieutenant Governorship for Punjab was established thanks to
this provision.
 4. Powers Regarding Law Commission
 This plan was put into effect by the Macaulay Committee, also known as
the Committee for the Indian Civil Service, in 1854. It was permitted for
the Court of Directors to elect a new Presidency. According to the Act, the
court of directors could potentially change the borders of the current states
and include the newly acquired state. In the year 1859, a separate
Lieutenant Governorship for Punjab was established thanks to this
provision.
 5. Power with Respect to Presidency
 A separate Governor for the Presidency of Bengal was to be appointed, but
until that time, the Court of Directors might give the Governor-General of
India in Council permission to appoint a covenant employee with ten years
of service as the province’s Lieutenant-Governor. Since it was the less
expensive of the two, the latter appointment was made.
 The Court of Directors was given authority to elect a new Presidency.
Additionally, authority was granted to periodically modify and regulate the
boundaries of the several provinces. Using this authority, Punjab was
transformed into a Lieutenant-Governorship.
 6. Open Competition System
 For the purpose of hiring and selecting civil servants, it established an
open competition system. Indians were thus given access to the covenanted
civil service as well. The Macaulay Committee, sometimes known as the
Committee on Indian Civil Service, was established in 1854.
 The Charter Act of 1853 made it abundantly evident that
the Company’s rule would not survive for an extended
period of time. The sharp division between the
Legislative and Executive Councils, which signals the
start of India’s Parliamentary system, is one of its
defining characteristics.
 The Bengali government released the Governor-General
from its oversight responsibilities, and he began working
for the Indian government. The Charter Act of 1853
establishes and regulates the Legislative Council, which
is regarded as a crucial constitutional provision.
 One of the most significant flaws of the Charter Act of
1853 was the exclusion of Indians from the Legislative
Council. The Charter Act of 1853 provided the Home
Government the chance to step in and take the East
India Company’s position in India because it did not
grant the East India Company the authority to rule
India for another 20 years. Things that happened in
1857, or the so-called “Mutiny,” accelerated this
process.