The Managing Agency, a traditional system in India, is now under way of transformation caused by the enforcement of the Company Act amended of 1956 and of 1960, the purposes of which lie in reforms of the colonial managing system of enterprises. The intended reforms would bring in changes of considerable, if not decisive, degree upon the old system. The origin of the Managing Agency System can be traced to the fact that the British colonial merchants, called the "new" agency houses in 1833 and the subsequent years, played parts in business management for the interest of mother-country industrialists who were mostly absent from India. The new agency houses rose on the ruines of the "old" agency houses which closed their doors during the commercial crisis of 1829-1833. The old agency houses were established by the ex-servants of East jndia Company who had been acting as traders, bankers, manu facturers, merchants, agents, etc. These agency houses represented the earlier form of the Managing Agency and, it is thought, came into existence during the "Olive-Hastings" period which commenced with the acqusition of "Dewanee" in Bengal, Bihar and Orissa by East India Company in 1765. In economic functions, they were colonial merchant bankers who were inclose connections, commercially, and financially, with their agents, international merchant bankers in England. It is a fact to be ke ot in mind that their activities accelerated the English Industrial Revolution through commercial and remittance trades between England and India.