Source: Warhammer Fantasy: 4th Edition

The Battle Standard
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A general may be accompanied by a special standard bearer carrying either his personal banner or the battle standard of the army itself. This battle standard does not have to move along with the general but it is most useful when he is close by. An army's battle standard is usually carried by a heroic individual and all the rules for character models apply. Unlike with ordinary standard bearers the battle standard is not passed on if its bearer is slain. Should the battle standard bearer be slain then the battle standard may be captured in the same way as a unit banner. See the rules concerning Standards for details.

If the standard bearer joins a unit of troops and fights in the front rank then the unit receives an extra +1 combat bonus when working out which side has won the combat. This is in addition to the usual +1 for the unit's own standard. This is the only circumstance when an extra banner confers a further bonus. Normally troops fighting alongside their banners only receive +1 no matter how many banners are involved.

Any unit within 12" of the battle standard may retake a failed break test. The unit is only allowed to retake this test once. If the general is within 12" of the unit as well then it will also benefit from being able to use his leadership value. These two factors combined, the general's leadership and the opportunity to re-take a failed throw, mean that units near to the general and the battle standard will tend to hold their ground come what may.