Founding elite armies is allowed, yes? (My definition of an elite army is an army specifically with the most active members of realm. ) I am rather sure I saw on the wiki before that it is allowed because that way you are working around more inactive people' schedules by not trying to have them do one turn moves or late turn moves all the time.
As long as the others also have some choices. If all you have is an elite army and a bureau army, then you are basically saying all others don't deserve the right to fight.