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FAQ - Governor

The Governor is set up to sell surplus military units, but it does not do it!
  If you let the Governor do all trainings, it will not train more units than you have accommodation for, unless you specifically ask it to do so. Even in such cases, units may leave your army if any outside factor comes in, such as the wearing away of scrolls.

If more units are ready in a given round than you have accommodation for, they will leave, even without a Governor. The Governor does nothing that you yourself could not do. All it does, is try to make space for the arriving troops by selling your EXISTING units, in the order you specify. It will not sacrifice the more valuable units for less valuable ones (set by you), since that would mean endangering your country.

All the Governor does, is try to make space for the arriving units before the change of rounds. If it is not possible (it will not sacrifice more important units), then the units arriving from training will be lost, just like they would be normally. The Governor does nothing else than what you could do anyway, it just tries to make space for the new units.