Final answer:
The National Adjudicatory Council is the FINRA committee responsible for reviewing initial decisions in disciplinary and membership proceedings, reflecting the principles of government bureaucratic oversight.
Step-by-step explanation:
The committee within FINRA that reviews initial decisions rendered in FINRA disciplinary and membership proceedings is the National Adjudicatory Council (NAC). The NAC has the authority to affirm, dismiss, modify, or reverse any findings in these proceedings, as well as the option to remand the case for further action. The role of this council is a crucial part of government bureaucratic oversight to ensure fairness and proper application of regulations within the financial industry.