The Act of Union 1840, passed on 23 July 1840 by the British Parliament and proclaimed by the Crown on 10 February 1841,[1] merged the Colonies of Upper Canada and Lower Canada by abolishing their separate parliaments and replacing them with a single one with two houses, a Legislative Council as the upper chamber and the Legislative Assembly as the lower chamber. In the aftermath of the Rebellions of 1837–1838, unification of the two Canadas was driven by two factors. Firstly, Upper Canada was near bankruptcy because it lacked stable tax revenues, and needed the resources of the more populous Lower Canada to fund its internal transportation improvements.