The correct answer is 1 only. Key Points Indian Councils Act 1861 It transformed the viceroy’s Executive Council into a miniature cabinet run on the portfolio system. Each of the five ordinary members was placed in charge of a distinct department of Calcutta’s government home, revenue, military, finance, and law. The portfolio system was introduced by Lord Canning. In this system, each member was assigned a portfolio of a particular department. The Governor-General’s Council was enlarged for legislative purposes. Hence, Statement 1 is correct. Now, there were to be between 6 and 12 additional members (nominated by the Governor-General). Therefore, the Governor-General was authorized to increase the number of members. Hence, Statement 2 is not correct. There were appointed for a period of 2 years. Out of these, at least half of the additional members were to be non-official (British or Indian). Their functions were confined to legislative measures. Lord Canning nominated three Indians to the Council in 1862 namely, the Raja of Benares, the Maharaja of Patiala, and Sir Dinkar Rao. Any bill related to public revenue or debt, military, religion, or foreign affairs could not be passed without the Governor-General’s assent. The Viceroy had the power to overrule the council if necessary. The Governor-General also had the power to promulgate ordinances without the council’s concurrence during emergencies. The Secretary of State for India in Britain could also dissolve any act passed by the Governor-General’s Council. This Act restored the legislative powers of the Governor-in-Councils of the Presidencies of Madras and Bombay (which was taken away by the Charter Act of 1833).