This question should not be difficult to answer but unfortunately due to the will and whim of man some have a hard time in answering this.
Let me say clearly from the beginning that there is biblical example for elders. In Paul’s letter to Titus Paul wrote, For this reason I left you in Crete, that you should set in order the things that are lacking, and appoint elders in every city as I commanded you (Titus 1:5). The indication here is that one of the things that was lacking was the absence of elders. This is also an indication that a church can function without elders; it is just lacking. In Titus 1:6-9 and 1 Timothy 3:1-7 Paul gives the young preachers the qualifications for elders.
Why would Jesus gives us these qualifications if we do not need or cannot have elders today?
The reason I bring this up is that recently I heard a sermon where it was taught from the pulpit that elders were a spiritual gift to the church of the first century and not applicable to the church today. In Ephesians 4:7-11 the preacher said that this passage refers to spiritual gifts to the church and that these spiritual gifts were no longer present today. His reasoning went to the extent that he said, “if we don’t have apostles today, we don’t have elders today”. He tried to justify his position by turning to Acts 20:28; Therefore take heed to yourselves and to all the flock, among which the Holy Spirit has made you overseers, to shepherd the church of God which He purchased with His own blood. He said that the Holy Spirit made them overseers and since the Holy Spirit does not do that today we don’t have elders. This is just a fundamental lack of knowledge and application of the word first to think that these are spiritual gifts and second to think that elders are not appointed by the Holy Spirit.
We have the same apostles and prophets today just as they had in the first century, they are just not physically alive. We have evangelists and elders today just as they had in the first century. All of these were for a spiritual purpose and in that respect they were and are a gift from Jesus.
We do not have the direct intervention and guidance of the Holy Spirit today as they had in the first century church, but we do have the complete word before us. In Romans 8:9-11 Paul speaks of the Spirit dwelling in us, 9 But you are not in the flesh but in the Spirit, if indeed the Spirit of God dwells in you. Now if anyone does not have the Spirit of Christ, he is not His. 10 And if Christ is in you, the body is dead because of sin, but the Spirit is life because of righteousness. 11 But if the Spirit of Him who raised Jesus from the dead dwells in you, He who raised Christ from the dead will also give life to your mortal bodies through His Spirit who dwells in you. This dwelling is not how the world describes and wishes for an indwelling of the Spirit, but it is through and by the word. In John 16:12-13 Jesus said, 12 “I still have many things to say to you, but you cannot bear them now. 13 However, when He, the Spirit of truth, has come, He will guide you into all truth; for He will not speak on His own authority, but whatever He hears He will speak; and He will tell you things to come. The Holy Spirit would guide them into the truth. Peter writes concerning the Holy Spirit, 2 Peter 1:20-21, 20 knowing this first, that no prophecy of Scripture is of any private interpretation, 21 for prophecy never came by the will of man, but holy men of God spoke as they were moved by the Holy Spirit. If the Holy Spirit would guide into truth and speak the things He hears. And if He would inspire and move holy men of God to write these things down, how does He move and work in us today? It is through and by the word. The miraculous work of the Holy Spirit has ceased but His guidance through and by the word continues. As elders are appointed according to the qualifications that Paul outlined, by inspiration of the Holy Spirit, these elders are in every respect appointed by the Holy Spirit.
The example we see from the New Testament is that the local church needs elders. These men offer a service to the church that emulates the role of Jesus to His body. Peter wrote, 1 The elders who are among you I exhort, I who am a fellow elder and a witness of the sufferings of Christ, and also a partaker of the glory that will be revealed: 2 Shepherd the flock of God which is among you, serving as overseers, not by compulsion but willingly, not for dishonest gain but eagerly; 3 nor as being lords over those entrusted to you, but being examples to the flock; 4 and when the Chief Shepherd appears, you will receive the crown of glory that does not fade away (1 Peter 5:1-4). The elders are overseers and shepherds of and for the local church.
This is not a position in the local church to be taken lightly. It should not be entered into without much thought and prayer and prejudice. Unfortunately some may come to the conclusion that we should not have elders as they see men who serve who are obviously not qualified. When one serves as an elder and is not qualified he brings a stain on that office and the church who appointed him to serve. In Hebrews 13:17 we read concerning elders, 17 Obey those who rule over you, and be submissive, for they watch out for your souls, as those who must give account. Let them do so with joy and not with grief, for that would be unprofitable for you. We are to obey the elders but if the elders are not qualified, yet they serve, it can be a situation such as Jesus described in Matthew 23:1-4, 1 Then Jesus spoke to the multitudes and to His disciples, 2 saying: “The scribes and the Pharisees sit in Moses’ seat. 3 Therefore whatever they tell you to observe, that observe and do, but do not do according to their works; for they say, and do not do. 4 For they bind heavy burdens, hard to bear, and lay them on men’s shoulders; but they themselves will not move them with one of their fingers.
It is a shame to the preacher and the hearer when any false doctrine is taught. We must be diligent in our study, 2 Timothy 2:15, that we might stand approved in the sight of God not taking anything for granted but prove and test all teaching from the scriptures, Acts 17:10, 1 John 4:1. One of the responsibilities of elders is the ability to stop false doctrine before it gains a foothold in the church. In Titus 1:10-11 the apostle tells us that elders have this responsibility, 10 For there are many insubordinate, both idle talkers and deceivers, especially those of the circumcision, 11 whose mouths must be stopped, who subvert whole households, teaching things which they ought not, for the sake of dishonest gain. Even though this is a responsibility of the elders every Christian ought to take this passage seriously and realize that with or without elders if error is being taught we must stand against it.
Shall we have elders? Absolutely, but only those men who are qualified, and continue to be qualified, according to the scriptures.
It should also be noted the the church did not tolerate this false teaching.