Former HIH Chairman Geoff Cohen will face criminal charges later this year relating to the collapse of the company, with prosecutors alleging he gave misleading information to shareholders about a $200 million payment from Allianz in 2001.

The 72-year-old had a committal hearing on Friday at the Downing Centre Local Court in Sydney, and magistrate Christine Haskett found there was sufficient evidence for him to stand trial.

The Australian Securities and Investments Commission (ASIC), which investigated the $5.3 billion HIH collapse, alleges Mr Cohen misled shareholders at the HIH annual general meeting in 2000 about its financial position.

Prosecutors allege he told shareholders a forthcoming venture with Allianz would provide $200 million in cash payable in January 2001. Mr Cohen is also alleged to have told shareholders the money was being paid up-front.

But the deal was subject to several restrictions and therefore not guaranteed to ease the company’s cashflow problems.

Mr Cohen’s legal team will submit that he and other directors were not aware the deal was restricted until two days after it was finalised.

The trial is scheduled to begin in the NSW Supreme Court on June 1.