Lynch, the executive chairman of investment house Prime Active Capital (PAC), sought board representation after his company acquired a 21% stake in the group, which is chaired by Roger Parry (pictured).

Media Square (MSQ) wrote to its shareholders earlier this month urging them to vote against Lynch’s appointment, saying he “has not demonstrated any clear understanding of how MSQ and its component agencies operate, has offered no practical suggestions for ways to change our strategy or operations, apart from general comments made about a return to an acquisitive strategy, nor has [he] offered any assistance in finding clients or recruiting talented staff”.

In letters from the firm to Lynch, which were also sent to shareholders, Media Square told the PAC boss that it would not allow Lynch to “try and obtain influence and creeping control through trying to force us to accept you as a director on the board”.

Today, the Media Square board said: “We are delighted that Prime Active Capital has withdrawn its unwelcome and unhelpful demand to appoint Peter Lynch as a director of MSQ. We are in the final stages of a major turnaround of the business and will continue to work on behalf of all shareholders to improve the operating performance and value of their company.”

Peter Lynch was unavailable for comment.