 By 1750, the position had become critical and an Act of Parliament was passed divesting the Royal African Company of its charter and divesting its forts and settlements into a new company, controlled by a committee of merchants.The Act prohibited the new company from trading in its corporate capacity but allowed it an annual subsidy for the upkeep of the forts.It was hoped that this would prevent the monopolistic tendencies of rule by a joint stock company and at the same time to save the government the expense entailed by the creation of a colonial civil service.