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It's on page 100. When they you have to name some non recruit to become the new leader, changing their role but keeping everything else.
So you'd have to buy a new leader, which can be difficult.
I also think that, technically, you aren't even allowed to buy a new leader since you can only have 1 and if you replace the old you have 1 and if you couldn't it's because you have only recruits left and you loose your warband.
I think they meant to have your warband degrade until it's completely broken and you have to start over, but that seems pretty silly.
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