The bill was introduced by William Pitt (the Younger), who was the Prime Minister of Great Britain at the time.

The Act included a provision asking the Company to follow a policy of non-intervention, although this was not always adhered to in practice.

The Act deprived the Court of Proprietors (shareholders) of the right to rescind, suspend, or revoke any resolution of the Directors that had been approved by the Board of Control.

The Act effectively made the East India Company a subordinate department of the State, with the British Government having supreme control over its administration.

The Board of Control was empowered to supervise, direct, and control all acts, operations, and concerns related to the civil and military government or revenues of the British territorial possessions in the East Indies.

The Board of Control consisted of six members, including four Privy Councillors who were nominated directly by the King.

To curb corruption, the Act ordered all civil and military officers to provide the Court of Directors with a full inventory of their property in India and Britain within two months of joining their posts.

One of the significant features of Pitt’s India Act of 1784 was that it used the term 'British possessions in India' for the Company's territories for the first time.

A Secret Committee comprising three Directors was established to work as a link between the Board of Control and the Court of Directors and to transmit the Board's orders to India.

By centralizing power and giving the Presidency of Calcutta greater authority over war, revenue, and diplomacy, Calcutta effectively became the capital of British possessions in India.