Explanation:

(i) Dyarchy, i.e., rule of two—executive councillors and popular ministers—was introduced. The governor was to be the executive head in the province.
(ii) Subjects were divided into two lists: “reserved” which included subjects such as law and order, finance, land revenue, irrigation, etc., and “transferred” subjects such as education, health, local government, industry, agriculture, excise, etc.
The “reserved” subjects were to be administered by the governor through his executive council of bureaucrats, and the “transferred” subjects were to be administered by ministers nominated from among the elected members of the legislative council.
(iii) The ministers were to be responsible to the legislature and had to resign if a no-confidence motion was passed against them by the legislature, while the executive councilors were not to be responsible to the legislature.
(iv) In case of failure of constitutional machinery in the province the governor could take over the administration of “transferred” subjects also.
(v) The secretary of state and the governor-general could interfere in respect of “reserved” subjects while in respect of the “transferred” subjects; the scope for their interference was restricted.