NHS Tayside chairman Professor John Connell has resigned with immediate effect.
Professor Connell tendered his letter of resignation on Friday morning, less than a day after health secretary Shona Robison called on him to quit the crisis-hit health board.
His name had deleted from the NHS Tayside web-page listing members of the board by 3pm.
His resignation came just days after it emerged NHS Tayside had used money from charitable donations to pay for computer equipment in 2014, before Professor Connell was appointed chairman.
It followed on from the revelation that the health board has been using money intended for digital health programmes to meet other costs.
Auditors said the health board has been “misrepresenting” its finances since 2012.
In a statement released on Friday morning Professor Connell said: “It has been an absolute privilege to provide leadership to NHS Tayside over the last 30 months; I am acutely aware of the outstanding efforts of all staff to deliver safe and effective healthcare to the population of the region.
“I have always maintained a focus on safe patient care and ensuring staff are supported to deliver that at all times. I am very pleased that this has not been compromised during a difficult financial period.
“I believe that NHS Tayside is set on the correct course to transform its services and maintain safe health and care for Tayside.
“I know that my successor will have the support of a superb group of healthcare professionals in taking this forward.”
Ms Robison thanked Prof Connell for his “personal probity” but said his resignation would allow the health board to move forward.
Ms Robison, the MSP for Dundee City East, said on Thursday that NHS Tayside chief executive Lesley McLay’s position has become “untenable”.
NHS Tayside needs to find £45 million of savings in the next financial year.
The health boards has required loans, known as brokerage, from the Scottish Government to balance its books each year since 2012.