British Parliament was called upon to renew the Charter of the Company in 1853.The Parliament had in the preceding year appointed two committees to go into the affairs of the Company and on the basis of their reports the Charter Act of 1853 was framed and passed. According to the new Act the law member was made a full member of Executive Council of the Governor General. Governor- General was given power to nominate a vice president of his council.
The Act provided that the salaries of the members of the Board of Control ,its secretary and other officers would be fixed by the British Government but would be paid by the company. Power was given to the court of directors to constitute a new presidency. Power was also given to alter and regulate from time to time the limits of the various provinces. This power was used to create the Punjab into a Lieutenant Governorship.
The number of the members of the courts of Directors was reduced from 24 to 18 out of which 6 were to be nominated by the crown. Power was given to the court of directors to constitute a new presidency. Power was also given to alter and regulate from time to time the limits of the various provinces. The Charter Act of 1853 renewed the powers of the company and allowed it to retain possession of the Indian territories. The Act of 1853 marked the beginning of a Parliamentary system in India. No Indian element was associated with the Legislative Council.