And bear in mind, Al Ewing is British, and the UK has Queen Elizabeth II as their head of state. So he should know how monarchy works. Teddy intended to only be a figurehead, which is what the Queen is in real life. The real person in charge is the Prime Minister, and I'm sure that there'd be politicians in charge, and they probably voted to make Dorrek the emperor. Teddy's really only in charge of the military.