Source: Warhammer Fantasy: 4th Edition

Capturing Standards
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It is unusual for a standard bearer to be killed in combat because other fighting models may be removed in preference. However, should a standard bearer be slain the standard is captured by the enemy if they win the combat. If the enemy does not win the combat the standard is not captured, but is lost amongst the debris of battle, trampled underfoot, or torn apart in the struggle.

If a unit breaks and flees, then the enemy automatically captures its standard if they pursue. If they do not pursue then the standard is lost in the tide of battle. In either case the standard is removed from the unit. Note that standards are only lost if the unit is broken in hand-to-hand combat, not if the unit flees after it has panicked or because of a failed fear test.

Captured standards may be placed behind the unit which captured them and carried about as trophies. Trophies have no fighting value; they are merely used to indicated that the unit has captured its adversaries' flag. The player surrenders the model for the duration of the game and his jubilant enemy places it behind his unit to proclaim his victory. Any trophies that are lost may be recaptured along with the unit's own standard if it breaks and flees from combat. Captured trophies may therefore be recaptured by beating the unit that has them, thereby avenging their initial loss and restoring them to a proper place of honour.