Martha Out as CEO and Chairwoman

Hours after she was indicted by a federal grand jury, Martha Stewart stepped aside as CEO and chairwoman of her embattled company.

But she will remain with Martha Stewart Living Omnimedia(MSO Quote) as a member of the board of directors and chief creative officer.

Jeffrey Ubben, head of a private investment firm and the largest shareholder after Stewart herself, will serve as chairman, and company President Sharon Patrick will become CEO, the company said.

"I love this Company, its people and everything it stands for, and I am stepping aside as Chairman and CEO because it is the right thing to do. This will enable the Company to continue to build the confidence and love of its readers, viewers, customers and strategic partners, without the distraction of my personal legal issues," Stewart said in a prepared statement.

Stewart and her former stockbroker were accused of interfering with a government investigation into her sale of ImClone Systems(IMCLE Quote) stock a day before the company's cancer drug Erbitux received an unfavorable ruling from the U.S. Food and Drug Administration in December 2001.

Stewart, who faces a civil law suit for alleged insider trading by the Securities and Exchange Commission, and her broker, Peter Bacanovic, both pleaded not guilty to all charges against them.