Buying property in company's name.

Querist : Anonymous (Querist) 21 October 2011 This query is : Resolved
I have a friend of mine who is moving ahead with buying a flat. Now in order to arrange for the required white money, he has been adviced by CA to make a payment in company's name. According to him, CA's often have few already registered companies that CA suggests will be transferred to my friend's name. And the white money amount he will put as loan given to the company from any other source. So the steps that my friend is going to take under suggestions from CA is:
1) Make payment from pre-registered company.
2) Do flat registry in company's name.
3) Meanwhile CA will appoint my friend as the only director of the company. Resigning any other directors, if at all there are.
4) this way he will be the owner of the flat.

My questions:
1) I think he must garuntee that when registry happens, though it happens in the name of the company, it must have "with sole director as Mr X".
2) In doing so, will my friend have .
complete all rights over the property.
3) is it the safe option. Does such company names lie with the CA and then can be transferred to anyone like my friend.
4) PLease guide me immediately about the route CA has suggested.

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A V Vishal (Expert) 21 October 2011
Honestly the CA is bullshitting. Don't fall into the trap, no company can have only one director under law.

Shailesh Kr. Shah (Expert) 21 October 2011
In a public company 3 directors are mandatory, in other company 2 directors are mandatory.

Querist : Anonymous (Querist) 24 October 2011
Thanks Mr Shah and Mr Vishal for your clarification on number of directors.

However, it could be that he meant he would add my friend as a director of the company legally. In that case, is it possible that one of the directors is declared to be the sole authority/owner of the private limited company. What I mean is if he adds my friend as another director of the pre-registered company he is talking about, and then gives my friend all the important privileges of the owner and also excludes himself of any rights. Can then it sound safe to register the property in the name of company.

Or else can you please show us the correct alternative to go about it. The point is we need to create white wealth to pay the amount to get the flat.