The former head of Bridgecorp says that, in hindsight, he should have got an independent legal opinion on whether related party lending needed to be disclosed in a prospectus given to investors.
Rod Petricevic and two other former directors are facing criminal charges at the Auckland High Court after the finance company collapsed in 2007 owing more than $450 million.
The charges relate to accusations they lied to investors about the company's financial health in its December 2006 prospectus.
Crown lawyer Warren Cathcart has been questioning Mr Petricevic on Thursday about whether he considered seeking external advice on related party lending.
Mr Petricevic said no one suggested he should get another opinion.
He said he thought he was doing the right thing and did not consider the lending an issue.