So basically if a player loses a match, he has the ability to respawn and set up a exiled government, either in a friendly players land (right of ways or share maps) or a friendly AI land. He can then spark uprisings in his occupied nation and other nations (mostly AI) will give him resources and units (depends) to liberate their lands back. 
This basically already exists and happens quite frequently. Just ask a player to give you a province and set up shop there. Not to deter you though, it is very rare that these governments have any relevance at all to the game; they tend to go inactive because the player behind them just moves on.
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