Solution:British Government passed an Act in 1858, which is known as 'Act of administrative reforms in India'. Provision of the Act is mentioned below-The company's territories in India were to be governed by Queen, the company ceased to exercise its power and control over these territories. India was now to be governed in the name of the queen.
The Queen's principle secretary of state for India received the powers anad duties of the company's court of directors. A council of fifteen members was appointed to assist the secretary of state for India. The council became an advisory body of Indian affairs. For all the communications between Britain and India, the secretary of the state became the real channel.
The Crown was empowered to appointed a Governor-General and the Governors of the Presidencies.
An Indian Civil Service was to be created under the control of the secretary of state.
All the property and other assets of the East India Company were transferred to the crown. The crown also assumed the responsibilities of the company, their related treaties, contracts and so forth.