My understanding is that Councils are player-formed organizations. It is intentional that the players form such organizations.
Players can (and it is heavily recommended that they do) form alliances of magicians, called Councils.
Tom had mentioned earlier something about "council stones" being needed to form a council. If you wanted to form a council, you had to go and find a council stone. I don't see anything in the rules about this, though.
Just a general comment on the site: The text is a bit hard to read in that fancy font. Cramped and ornate makes a rough combination.
