Yes, you are absolutely correct. Just as the city is governed by the FM with the most management (not sure if FL/FH matter or not). If it is a tie, which has happened to me before plenty of times, it is then the first one who gets to the army/settlement.
So if you had a 4-star general lead an army for some time, and another 4-star FM joins, no change is made. But if that initial 4-star general leaves, the 4-star FM will take up the general's baton and even if the 4-star general comes back alter, the FM will remain the general. First come, firstservedto lead.
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