The primary objective of Pitt’s India Act of 1784 was to rectify the defects and shortcomings of the Regulating Act of 1773, which had failed to effectively control the Company's administration.

Although a bill was introduced in January 1784, it was not passed because the parliament was dissolved. In the subsequent election, William Pitt obtained a majority and got the bill passed in August 1784.

The rules and regulations made by the Governor General in Council could be dissolved or disallowed by the King-in-Council within a period of two years.

The Act was passed in 1773 during the reign of King George III (who reigned from 1760 to 1820).

While the Act settled the salaries, they were paid by the East India Company, though derived from the revenues of India.

The Governor General in Council was authorized to make rules, ordinances, and regulations for the good order and civil government of the settlement of Fort William and subordinate factories.

The Act recognized that the Company had become a semi-sovereign political power and aimed to bring its administration under the supervision of Parliament.

Warren Hastings, the first Governor General, was frequently outvoted and overruled by the hostile majority (Francis, Clavering, Monson) in his Council.

It provided a written framework (constitution) for the governance of the Company's possessions, marking the start of constitutional development.

Decisions were made by majority vote. Since the Governor General had no veto (only a casting vote), the other four members could combine to outvote him.