Following 1763, the company acquired vast terriotory in India, making it not only a major trading company, but also a player the political and militarny affairs of the region. This alarmed the British government, as it feared the company's unchecked power could lead to corruption, mismanagement and possibly even armed conflicts.
To ensure the stability and security of the British empire in India
The company's control of India was seen as crucial to maintaining the British empire's global power. To protect its interest, the government wanted to ensure that the company's actions did not jeopardize the stability of the empire or lead to conflict with other European powers or local rulers.
To improve the administration and governance of India
The company's administration was often criticized for its inefficiency and corruption, leading to calls for reforms. The government aimed to improve the company's governance, ensure better management of its resources and protect the rights and well-being of the Indian population.
To reduce the company's financial debt
The East India Company was heavily indebted, and the British government was concerned about the financial risk it posed to the empire. To address this, the government sought greater control over the company's finances and to ensure that its debt was managed in a way that safeguarded the interests of both the company and the British treasury.
To address the growing political influence of the company in British domestic affairs
The East India Company's wealth and power had given rise to a group of influential individuals, known as the "nabobs", who held considerable sway in British politics. This raised concerns about the company's influence and its potential to meddle in domestic affairs, leading the government to seek increased control to prevent undue political influence.