Challenges and characters not in fighting rank

Hey again more newbie questions, I had a game yesterday Empire vs Ogres. My friend had a block of 40 halberds with full command, wizard and captain with BSB which was charged by my 8 Ironguts with slaughter master in the front then in the flank later.

He placed the full command on the front rank but placed the captain and wizard in the 3rd rank away from fighting ranks. This apparently meant I could never issue a challenge to the captain or wizard meaning the captains “Hold the Line” ability meant I could never cause them to flee despite doubling the combat res.

I don’t play enough to dispute it and just wanted to have a fun battle; is this right? I’m new and he use to play years ago