Source: Warhammer Fantasy: 7th Edition

Position Within Unit
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The unit's champion, standard bearer, musician and any characters that have joined it, must be placed in the unit's front rank. If the unit's models turn to face the side or rear, the unit's champion, standard bearer, musician and any characters in the unit, are automatically rearranged into the new front rank.

If all such models cannot fit into the front rank, the player must place some of them into the second rank. Champions, standard bearers, musicians and any characters in the second rank cannot take part in close combat in any way unless they are directly engaged, via a flank charge for example, Also, some of the bonuses these models confer to the unit are lost, as described below.

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