The band's synchronised dance routines and matching stage costumes - many of them designed by Stedman - resulted in them being described as the British Jackson 5.
Stedman's death on March 10 was announced yesterday by his sister Deniece, who said he had diabetes and had been on dialysis.
In a statement, the family said: "He was a gentleman to the very end - in every way and an amazing son, brother and uncle. May the memories and love he gave to us and the world be our greatest comfort. He will be deeply missed."
Five Star consisted of Stedman and Deniece as well as Lorraine, Doris and Delroy Pearson.
It was their father - musician Buster Pearson - who decided to put his children's talents to good use and form a band.
Five Star had six top 10 singles in the UK, including System Addict, Can't Wait Another Minute and Rain or Shine.
They released their debut album Luxury of Life in 1985, and followed it up with Silk and Steel in 1986, which topped the UK album chart.
The next year they won Best British Group at the Brits.
Stedman, the eldest of five children, was born in Romford, Essex. He studied dance and fashion at college before joining Five Star in 1983.
At times, Stedman had a wild life. In 1990, he appeared in court and admitted a public indecency charge after being arrested in a public toilet in London.
And in 2007, police investigated claims of a threat to kill.
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