The act granted the company a monopoly of Scottish trade to India, Africa and the Americas, extraordinary sovereign rights[1]: 25  and 21 years of exemptions from taxation.

[2]: 111–2 In July 1698 the company launched its first expedition, led by Paterson, who hoped to establish a colony in Darien (on the Isthmus of Panama), which could then be used as a trading point between Europe and the Far East.

Though five ships and 1,200 Scottish colonists landed successfully in Darien, the settlement was poorly provisioned and eventually abandoned.

In 1700–01 the Company sent further expeditions to Java and China, but suffered shipwrecks at Malacca and seizure of cargo by pirates at Madagascar.

Although attempts to raise funds in London, Hamburg[2]: 109  and Amsterdam had been blocked, by the beginning of August 1696 the full target of £400,000 sterling had been reached.

On 3 April 1696 a general meeting of subscribers elected a committee of twenty from their number to work with the promoters to establish rules and a constitution.

Candidates for election had to own at least £1,000 of company stock and so a limited number of shareholders, 119 out of a total of 1,320 (1,267 individuals and 53 institutions), were eligible to become directors.