Domenic Carosa, CEO and founder of Australian digital media and independent record label Destra Corporation, has been axed by the company's new board. He will be retained for the time being as a consultant.

Destra and 33-year old Carosa's woes began when stockbroker Opes Prime collapsed in late March, owing A$650 million ($614.7 million) to its largest creditor, ANZ Banking Group.

Destra rapidly expanded in the last three years, and Opes had funded the company's purchase of a 10% stake in TV production and distribution company Beyond International in late 2007. Destra lost A$900,000 ($851,216) on its Beyond holding.

In early April, the ANZ took control of more than 10 million of Carosa's Destra shares, leaving him with 1.83 million shares. His stake in the company he founded as a teenager 15 years ago dropped from 3.8% to 0.6%.

When Destra sold A$15 million ($14.1 million) worth of its stock to keep operational, Prime Media Group -- a regional TV operator with a growing collection of new media assets -- increased its stake in Destra on Monday to 43.96% from 19.6%.

Twenty-four hours later, Prime Media announced a new interim board, and stood Carosa aside.

Carosa was a pioneer of the Australian digital sector, launching the market's first music download company MP3.com.au in 1999. "I'm taking my first holiday in 15 years and will be back in 2009 to look at options," he told media following his departure.

Destra shares surged 15% to 11 cents yesterday.

Destra Corporation has two core divisions: Destra Entertainment and Destra Media.

Destra Entertainment purchased a number of record labels including dance label Central Station, country music Compass Records and world/adult contemporary MRA Entertainment. It also owns independent film and DVD distributor Magna Pacific. In January, Destra Entertainment signed a distribution deal with Sony BMG Music Entertainment Australia.

Destra Media operates a number of online communities including MP3.com.au, fashion and music culture TheScene.com.au, extreme sports and games Planet X, short films Niceshorts.com.au and Brand New Media, which creates, sells and markets media content to advertisers and their agencies.