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Ok i was reading thur the CSM last night and came across this situation yet again its totally grey or is it legal or illegal.
Command Squad

OK since every one in the command squad is a vetern except for the Apothercary( which is werid i though)

So the rule/ option is you can upgrade a vetern to a command standard bear for x points and

upgrade one vetern to command champion with power weapon and combat shield for X points.

My thinking is hes still a vetern and can still buy other weapons ( he does have a different stat line though higher WS)

Is it legal or illegal or is it a grey area yet again.

The Standard is actually just given to a Veteran. You don't upgrade him to a standard bearer.

The Champion is a grey area. Some feel that he is still a Veteran, just a special one. Some feel that as he is upgraded to something else, he is no longer a Veteran.

So can you switch out the weapons of the champion>> like a set of lighten claws and storm shield

If you consider him to still be a Veteran, yes.
If not, no.

A Company Champion doesn't swap any equipment for his power weapon and combat shield, I think it's a similar situation to a Nob in a boyz mob, you can swap the Nob's gear for a power klaw before changing from slugga/choppa to shoota, and then he misses the change to shoota.

In this case, you could choose to swap the Company Champion's chainsword/bolt pistol for any of the choices listed, and when you upgrade to a Company Champion, he will keep the older upgrades, as well as get a power weapon and combat shield.

Of course, I would also argue that if you bought him a special close combat weapon, then when he gets the power weapon he will be excluded from having +1 attack for two close combat weapons ever (even if dual wielding lightning claws, or if he has a pistol available) but I am aware that many people do not subscribe to this belief.

I don't know.
I say no, cause he's given a whole different statline and occupies a section in the Statistics area all by himself, like the Apoth.

/Shrug...I prefer not to use him to bypass this...hell, if you are keeping points low, the champion upgrade without extra topping is highly decent already...