Source: Warhammer Fantasy: 7th Edition

Using Superior Leadership
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Units use the best Leadership available for their tests, so if a unit of troops is joined by a character (or any other model with a better Ld), the unit uses the highest Leadership value available. Characters often have better Leadership values than ordinary troops, so a unit led by a superior character will be less prone to psychology effects. See the Characters section for rules concerning the interaction between characters and units of troops when they are subject to different Psychology rules.

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