Each Clan is ruled by a council composed of its Bloodnamed warriors. The Clan Council elects two ruling Khans. One Khan serves as the Clan's senior military commander and the executor of that Clan's bureaucracy. The other Khan's position is more nebulous. He or she is second-in-command and enjoys a high status within the Clan, but the position does not include specific duties. These must be assigned by the "senior" Khan. Clan Councils control their warriors and the members of all other castes belonging to that Clan. The interaction between a Clan Council and the various caste governments is extremely convoluted, but when necessary, the Clan Council can invoke the satarra, an overriding veto.

The Khans of all the Clans form the Grand Council, which passes judgment on matters affecting Clan society as a whole. Nicholas Kerensky erected the Hall of Khans on Strana Mechty for this important governing body. His father's tomb dominates a small chapel on one side of the Hall. Nearby are smaller, though no less impressive, halls for each Clan.

The supreme ruler of the Clans is the ilKhan. This position is filled only when the Clans must coordinate their efforts for some task, or during times of great internal or external threat. A simple majority vote in the Grand Council can elect an ilKhan. However, those who oppose the election can and usually do demand a Trial of Refusal. Nicholas Kerensky appointed himself the first ilKhan of the Clans in the summer of 2815. He was unopposed.

One of the most far-reaching measures Nicholas instituted was the elimination of surnames. Surnames were too closely associated with the corruption of the Inner Sphere. Kerensky allowed only the loyal 800 to retain their surnames. These 800 family names are the basis for the Bloodnames. In fact, it is considered a deliberate affront to society to give a child two names or to adopt a second personal name, unless it is an earned Bloodname. The second name can only be interpreted as an intentional slur on the honor and dignity of Bloodnames.