Essex County Cricket Club chairman John Faragher has resigned from his role over a historical allegation that he used racist language at a board meeting in 2017, the team said on Friday.
In a statement, it added Faragher "strongly denies" the incident but resigned after Thursday's board meeting.
Essex said it would review why the incident was not fully and independently investigated at the time and would consider further steps to be taken.
"This is a proud club with a zero-tolerance policy towards racism and any form of discrimination and, as Essex Cricket's new Chief Executive Officer, I will not hesitate to uphold those principles and drive out any form of discrimination that is uncovered," chief executive John Stephenson said.
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"I was made aware of this single allegation on Thursday having joined the club four weeks ago. The board met last night during which Faragher's resignation was unanimously accepted by the board."
Stephenson added that the club was committed to working with the England and Wales Cricket Board (ECB) to eradicate discrimination from the game.
"This is an important first step, but the club must now act further," he said, adding that they would review their internal reporting mechanisms to ensure matters are dealt with "appropriately and immediately".
Faragher's decision comes a day after fellow county side Yorkshire's chief executive Mark Arthur resigned in the latest fallout from the allegations of institutional racism made by its former player Azeem Rafiq.
The club has been suspended from hosting internationals by the ECB after criticism of its failure to act on a report that found Rafiq was a victim of "racial harassment and bullying".
Roger Hutton had resigned as Yorkshire chairman, accusing the club's executives of failing to learn from racism allegations.
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