If a unit is defeated in close combat and subsequently breaks and flees then the enemy automatically captures its standard if they pursue. The standard is captured regardless of whether the pursuers catch and destroy the fleeing troops. Standards are also captured if an enemy unit is completely destroyed in close combat.
If victors do not pursue then the standard is lost in the tide of battle but it is not captured. In either case, the Standard Bearer model is removed from the unit, and in the case of a unit which is not destroyed, it is replaced with an ordinary trooper model.
Note that standards are only lost if the unit is defeated and broken in close combat, not if the unit flees after it has panicked or because of a failed.
Captured standards may be placed behind the unit which captured them and carried about as trophies for the rest of the game. Trophies have no fighting value; they are merely used to indicate that the unit has captured its adversary's flag. The player's Standard Bearer model is surrendered for the duration of the game and his jubilant enemy places it behind his unit to proclaim his victory (or removes it from the table if this is more convenient).
Trophies may be recaptured along with the defeated unit's own standard if it breaks and flees from combat. Captured trophies may therefore be recaptured by defeating the unit that has them, thereby avenging their initial loss and restoring them to a proper place of honour.
Once the game is over, a player can claim extra Victory points for standards he has captured and still holds, as described in the Scenarios section.