Shanan John Ryan Ramsden faced Brisbane Supreme Court on Wednesday for a committal hearing on eight charges brought by the Australian Securities and Investment Commission (ASIC).
Ramsden was accused of aiding and abetting his co-defendants to act dishonestly as company directors during the collapse of the Members Alliance and Benchmark group of companies in 2016 and 2017.
The group of 18 companies based on the Gold Coast were placed into liquidation in July 2016 with the Australian Taxation Office claiming it is owed a $26 million debt.
Ramsden was not required to say anything or enter a plea after Magistrate Mark Nolan ordered him to stand trial but chose to respond by saying "no, not guilty".
Richard Marlborough was in September this year committed to stand trial on ASIC's charges of 21 counts of trading while insolvent, 10 counts of dishonestly using his position as a director, one count of disposing of property after becoming a bankrupt and one count of fraud.
The court on Wednesday committed Marlborough to stand trial on charges from the Queensland Director of Public Prosecutions of fraud, acting dishonestly as a company director and disposing of a property with intent to defraud.
The court on Wednesday heard testimony from the group's former employee Sandra Louise Pepi and former solicitor Oliver Alexander Jones as well as ASIC case analyst Paul Christopher Dunn.
Ms Pepi testified that almost all of the time she reported to the group's director, Marlborough, and provided him with spreadsheets that stated the group's financial position for his approval.
Ramsden's barrister, Saul Holt KC, asked Mr Jones what steps he took when providing information to ASIC to check if he was violating his obligation to protect the confidentiality of discussions with his clients.
"The vast bulk of your statement, on the face of it, is subject to legal privilege," Mr Holt said.
After a reminder from Mr Nolan about his rights as a witness, Mr Jones repeatedly declined to answer questions that could have the potential to incriminate himself.
Mr Jones did agree that the group of companies had "acted illegally" by trading while insolvent or close to being so.
Under cross-examination by Mr Holt, Mr Dunn agreed that he had received material from the group's solicitors via the liquidator but had not approached Marlborough to check if his confidential communications with a solicitor had been disclosed.
At the start of the hearing, Queensland prosecutors dismissed their charges against another of the group's directors, Colin William MacVicar.
The committal hearing will resume on Thursday and Friday to determine whether there are grounds for MacVicar to stand trial on charges brought by ASIC.
Ramsden, Marlborough and MacVicar had their bail continued following Wednesday's hearing.
