His Holiness Penor Rinpoche was the 11th Throneholder of the Palyul lineage, which began in 1665 based on the termas (hidden teachings) revealed by Tertön (treasure revealer) Migyur Dorje. The Palyul lineage is one of the six primary lineages that comprise the Nyingma School of Tibetan Buddhism. His Holiness Penor Rinpoche, as the throne holder of the Palyul lineage, was fully authorized to recognize and enthrone Palyul lineage Tulkus such as Ahkön Lhamo. This recognition was unique, however, in that that she is a Western woman (the first to be recognized as a Tulku) and had not studied Buddhism formally before he recognized her. Even though she had no formal training, after consultation with others in his lineage who were also qualified to recognize an individual as a Tulku, His Holiness enthroned Alyce Zeoli giving her the name Jetsunma Ahkön Lhamo. In doing so he stated that she was fully qualified to teach the Buddhadharma. Other than that, he did not give her other formal responsibilities in the Palyul lineage.
As Jetsunma Ahkön Lhamo’s recognition illustrates, the basic function of lineage in Tibetan Buddhism is to instill confidence in the student that what the teacher is teaching is authentic and is something the student can trust and depend on in their spiritual quest. As such it also serves to protect and safeguard the original teachings against corruption and false teachers. Lineage also provides authority. The origin of any text used, or of meditation practices taught, can be traced back through the lineage to its enlightened source. This safeguards as much as possible the validity and potency to the transmission.
Lineage can also be described as a chain of unending blessings from enlightened mind to the individual practitioner. It is, therefore, the source of all the blessings that the student receives. Without it, there are no blessings and no authentic transmission of the Buddhadharma.
It should also be pointed out that lineage is also supremely important in the other schools of Buddhism, such as Theravada and Mahayana traditions. Although these traditions never developed a Tulku system, they do consider it vital to the integrity of their tradition to trace the lineage of their teachers directly back to the Buddha himself. Thus lineage is not something peculiar to Vajrayana only but a common thread in all schools of Buddhism.