Sir Stuart did not see any conflict of interest but has acted to close the row
The chief executive of Marks & Spencer, Sir Stuart Rose, has sold his £100,000 stake in a chain of karaoke bars after controversy over his investment.
The Lucky Voice business was set up by internet entrepreneur Martha Lane Fox, who is a non-executive director of M&S.
Investors had complained that Sir Stuart's stake could compromise Ms Lane Fox's independence.
"I have unwound the investment in Lucky Voice." the M&S boss said. "Perhaps it should be called unlucky voice."
Sir Stuart did not see any conflict of interest, a spokesman for the retailer said.
"But he doesn't want such a small point to distract from the bigger issues of managing the group," he added.
M&S investors had already been upset by Sir Stuart's decision to promote himself to combine the roles of chief executive and chairman - which goes against City recommendations on corporate governance practice.
Sir Stuart has conceded the firm could have "done a better job of explaining" the decision.
Ms Lane Fox made her fortune through founding LastMinute.com.
Her roles at M&S include a seat on the remuneration committee which sets the levels of executive pay - including that of Sir Stuart.
Lucky Voice, which began in London's Soho, describes itself as "the most liberating, heart-racing, life-affirming private karaoke experience on earth".