A couple clarifications:You don't.
This is only possible when the realm is in anarchy. There are two ways to get the realm into anarchy: either have it completely fail a ruler election, or lead a successful rebellion that takes the palace by force. (The ruler stepping down to let the rebellion succeed will not result in anarchy.)
Changing the government options that you *can* change, such as how positions and lordships are elected/appointed, will change nearly all aspects of the day-to-day government operation. The only thing that won't change is the name of the government style, and some of the mostly-transparent underlying mechanics. Things such as the ruler's daily location bonus, and a few other less-obvious things.
The new duke will remain lord of the region as well. He can then step down and appoint someone else as lord if he so desires, but does not have to. The new duchy will also only have a single region, that being the region in which the new duchy is created.
To the bugtracker!
My EC character is ruler, and not a lord or duke. He has no option to found a new army.
It should be noted that if your ruler is *already* the sponsor of an army, then *all* army options are open to them, including the option to create a new one. It's just those poor sods that don't already have one that are locked out of creating one.
There are three positions that allow you to create an army
So, one of my character just became a ruler (my first time ever), and I have a few questions. So I'll just jump right in:
2) If I create a new duchy from a city that already has a Lord, will that Lord automatically be promoted to Duke? If not, then can I appoint myself as Duke?
Yes with one exception I think. If the City/Townsland/Stronghold is currently without a Lord then attempting to make it a Duchy will allow you to appoint a Lord to it from a list of candidates.
