Eventually, the king began negotiations with the American colonies and accepted the resignation of Lord North – an action which would, eventually, lead to Coke leaving Parliament. A new government was formed in April 1782, with Lord Rockingham as Prime Minister and Fox and Lord Shelburne as Secretaries of State. Rockingham and Shelburne disagreed constantly, particularly over the situation in North America, and with Rockingham's death on 1 July Shelburne was made Prime Minister. At this the rest of the government resigned, and after a period of political chaos the short-lived Fox-North Coalition was formed in April 1783. Coke was disgusted by this arrangement, describing it as a "revolting compact". An East India Bill, which created 7 commissioners to oversee India, brought chaos to the coalition. Controversially, the commissioners would be appointed by the government, not by the crown, which challenged what the King saw as his constitutional right. Defeated in the House of Lords, the bill was used by George III to overturn Fox's government and install a government led by William Pitt the Younger. Parliament was eventually dissolved on 25 March 1784, and thanks to Coke's long-standing support of Fox and his actions, the ensuing general election led to Coke losing his seat.