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A character can be assigned as a squad commander, but without the corresponding skill, they will not add any bonuses, except for their own. In this case, their health equals one health point (+evasion*3), while the damage depends on the weapon's damage after modifiers + accuracy, and morale depends on will checks*10. Only magic can be used as skills.
Added after 32 seconds
Oh, almost forgot: a character with the skill can command any number of squads.