Overview
Tim Xenos, former CEO and director of FAL Healthy Beverages Pty Ltd based in Peakhurst NSW, has been resentenced following a partial successful appeal against his original conviction.
Resentencing outcome
On 5 August 2026, the District Court of NSW resentenced Xenos to 6 months imprisonment served as an intensive corrections order, plus 80 hours of community service.
Original conviction and sentence
Xenos was originally convicted on 27 February 2025 in the Local Court of NSW on three charges:
- Making business decisions while disqualified from managing a corporation under section 206A(1)(a) of the Corporations Act
- Breaching section 184(2) of the Corporations Act
- Failing to fully disclose information to his bankruptcy trustee under section 265(1)(ca) of the Bankruptcy Act 1966
His original sentence, handed down on 9 May 2025, was 18 months imprisonment as an intensive corrections order plus 200 hours community service.
Appeal and acquittal
On 24 April 2026, the District Court of NSW acquitted Xenos of the charge of dishonestly using his position to gain an advantage for himself under section 184(2) of the Corporations Act. This acquittal led to the reduced resentencing on 5 August 2026.
Prosecution
The prosecution was run by the Office of the Director of Public Prosecutions (Commonwealth) following an ASIC investigation.
Key actions
- Directors and managers are required to confirm they are not disqualified from managing a corporation before making business decisions. A disqualification can arise from bankruptcy or a previous court order, and breaching section 206A(1)(a) of the Corporations Act carries a criminal sentence.
- The Bankruptcy Act 1966 section 265(1)(ca) requires a bankrupt person to fully and truly disclose all relevant information to their bankruptcy trustee. Failing to do so is a criminal offence.
- The ASIC banned and disqualified register is available at asic.gov.au to check whether a person is currently disqualified from managing a corporation.
This is a plain-English summary for information only, not legal or compliance advice. Always check the official source or consult a qualified professional.