A guild may have designated individual leaders or a guild council. 

* If the leaders of the guild or the members of the guild council with
  the authority of their office can exert power over fellow mortal
  members of the guild, the selection of the leaders or the council
  members has to be done by mortals.

* If the mortal leaders or council members have powers over their
  fellow guild members, players who want to join the guild must be
  told before they join what these powers are.

The guildmaster sets up the rules, decides which powers the council
should have, and how the members are selected, but he or she may not
interfere in the selection process itself, nor may he or she meddle
when the council is using its privileges.

An example might look like this:

  The guildmaster codes a system for the members of the guild to elect
  a council. The council can for example remove mortals from the guild
  or make it impossible for a guild member to use the training
  facilites the guild offers.

  The council then sets up the rules which the guild members have to
  follow and decides on punishments.

  If, for example, the council decides to make it illegal to kill
  certain npcs, the guildmaster can either automatically remove a
  player from the guild when he or she kills one of those npcs, or he
  can decide to leave punitive measures to the council.

  In this latter case, it is then solely up to the council members do
  gather the information necessary to make a decision, and to enforce
  this decision using the powers that have been bestowed upon them by
  the guild master. If the council eg is not able to remove a player
  from the guild without wizard intervention, because it lacks the
  necessary commands, the player cannot be removed from the guild.

  The powers of the guild leaders or the council must remain within
  reasonable limits, and should relate only to their guild. So it
  would be illegal to make it possible for a guild council to reduce
  the quest exp of a player, or to give the council access to log
  files, whereas it would be legal to allow the council to remove a
  player from the guild (with all the normal consequences of leaving
  the guild) or to make WANTED posters, naming killers of npcs in a
  city, which the council members can read like every other player.

Please keep in mind that the council members are mortals, so they
should not have wizard-like powers or knowledge, but be subject to the
risks of second hand information and hearsay, lack of proofs and so on
like any other law enforcement officer.

