His departure has led to a restructuring of the board of both the club and its parent company.
Casey Coffman, the executive vice-president of Hicks Holdings, has replaced Hicks Jr, with Liverpool chief financial officer Philip Nash and the club's commercial director Ian Ayre joining him as directors of both companies.
Hicks Jr was seen as a key figure on the Anfield board, comprised of Hicks and his father, co-owner George Gillett and his son Foster and managing director Christian Purslow.
However, Hicks Jr's position came under increasing pressure from supporters' groups as a result of allegations over the weekend regarding his abuse of a fan who had contacted him directly to discuss the state of the club and its finances.
Hicks Sr (left) and Gillett took control of Liverpool in March 2007
The Spirit of Shankly, a group of fans committed to the removal of Hicks Sr and Gillett, had called for Hicks Jr to resign on Sunday.
They were also critical of the club's hierarchy for remaining silent on the issue.
Co-owners Hicks Sr and Gillett have endured a difficult time at Liverpool since taking over at Anfield in March 2007.
Supporters have regularly voiced their dissatisfaction at the level of debt taken on by the club after the buy-out by the American duo.
Hicks and Gillett have admitted they are keen to attract new investment to the club, with Saudi Royal Prince Faisal reportedly interested in buying a stake.
Their cause has not been helped by a decline in performance on the pitch, with the Reds losing seven league matches already this season, leaving them well off the pace in the title race.
Liverpool failed to reach the last 16 of the Champions League, after finishing third behind Italian's Fiorentina and French side Lyon in Group E.
Meanwhile England youth international Nathan Eccleston, 19, has signed a new contract which will keep him at Anfield until June 2013.
The forward made his first-team debut as a substitute in the Carling Cup fourth-round defeat at Arsenal and was given his Premier League bow late on in the loss at Fulham three days later.
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