- Laid foundation of Parliamentary system of Government, the executive and legislative separated. Legislative Assembly functioned in the model of British Parliament.
- Renewed the term of East India Company for an indefinite period;
- Reduced the number of Board of Directors from 24 to 18 and 6 out of them were nominated;
- The 4th member became at par with other members as right to vote was conferred; and further added, 6 members known as 'Legislative Councillors'. Six Members were the Chief Justice and a puisne judge of Calcutta Supreme Court, and four representatives, one each from Bengal, Madras, Bombay and NWFP. Therefore, the total number of members became 10.
- Now it became: Governor-General, 6 members (Legislative Councillors), 4 members (Governor-General-in-Council), Commander-in-Chief.
- Indian Civil Service became an open competition. Macaulay made Chairman of the Committee.
- The Act for the first time introduced local representation in the Indian (Central) Legislative Council. The Governor-General's Council had six new legislative members were appointed by the local (provincial) governments of Madras, Bombay, Bengal and Agra.
- The Act separated, for the first time, the legislative and executive functions of the Governor-General's Council.
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