Political representative Jett Groshinski received the letter from the OUSA not long after its general meeting on Thursday.
"The executive has determined that you have failed to manage the conflict of interest arising from your candidacy as a Labour-endorsed candidate for the Dunedin City Council.
"This failure has directly impacted your ability to oversee the essential aspects of your role, including the promotion and student advocacy at this year’s local body elections and Politics Week, resulting in the reassignment of these duties to other executive members," the letter said.
"We sincerely appreciate your contributions during your time in the role.
"We ask that you step back from your executive duties to ensure that OUSA can continue to operate transparently, accountably and in the best interests of our members."
Mr Groshinski said he had about a fortnight to respond to the letter and if he did not resign formally, the matter would be taken to a vote of no confidence at a special general meeting (SGM).
He believed his decision to call a SGM urging the OUSA executive to adopt a boycott, divestment and sanction (BDS) position for products with ties to Israel was the reason they requested him to step down.
The BDS position passed with a near-unanimous vote at a packed SGM last month.
Mr Groshinski, who is running for the city council on a Labour-aligned ticket, said the fuss had not affected him too much.
"It kind of has just been what it is. I mean, I can still work professionally with everyone.
"I continue to do my submissions and advocating on behalf of students.
"Admittedly, it probably is a little bit more tense at OUSA executive meetings, but excluding that, yeah, I'm confident I can still work with everyone."
OUSA president Liam White declined to comment when approached.
