Charter Act of 1793

By 1793, when the company's charter timed out the British parliament passed a new charter which authorized the company to carry on trade with the East Indies for next 20 years.

• The company was allowed to increase its dividend to 10%.

The Act recognized the Company's political functions and clearly established that the "acquisition of sovereignty by the subjects of the Crown is on behalf of the Crown and not in its own right."

• A provision in the Charter act of 1793 was made that the company, after paying the necessary expenses, interest, dividend, salaries, etc from the Indian Revenues will pay 5 Lakh British pounds annually out of the surplus revenue to the British Government. However, the act also had a provision, that Crown could order the application of the whole of the revenue for the purpose of defense if the circumstances posed such demands.
• Expenses, interest, dividend, salaries, etc were to be borne by the Indian Exchequer.

In this act the Governor General was empowered to disregard the majority in the Council in special circumstances. Thus more powers were entrusted in him. The Governor General and respective governors of the other presidencies could now override the respective councils, and the commander in chief was not now the member of Governor General's council, unless he was specially appointed to be a member by the Court of Directors.

• If a high official departed from India without permission, it was to be treated as resignation.

This act reorganized the courts and defined their jurisdictions. The revenue administration was divorced from the judiciary funtions and this led to disappearinf of the Maal Adalats.

The Charter Act of 1773 was followed by the Act of 1797 which reduced the number or Judges of the Superme court at Calcutta from 4 to 3 (One chief Justice and 2 other judges).