Huan has 14 days to reply to the letter issued by the party central working committee (CWC) after a meeting on Sunday.
The move to censure the former Batu Kawan MP was taken after he expressed unhappiness with the party’s top leadership in an interview last week.
He had also hinted that he would resign and join the opposition if things did not improve.
In a statement today, Gerakan secretary-general Teng Chang Yeow said the CWC considered the vice-president’s recent statements as going overboard and tarnishing the party’s image.
“While respecting Huan’s right to express his views, the CWC viewed his recent media statements, particularly those ridiculing the party in the vernacular press, as having gone overboard and badly tarnishing the party’s image.
“His actions have caused dissension and division in the party, which is unacceptable to the CWC,” he said.
Teng said any disagreement or criticism should be voiced through proper party channels instead of through the media.
He said the CWC had issued reminders to members to be disciplined and protect the party’s image at all times.
Teng said the party had yet to receive Huan’s resignation.
According to the party constitution, members who want to resign have to give written notice 30 days before to both the branch secretary and secretary-general.
When contacted, Huan said he had yet to receive the letter.
“I will only make my next move after seeing the letter,” he said.
Asked whether the party was being too sensitive in the matter, he said: “Maybe. If you (the party) have not done anything wrong, why are you afraid of criticism?”