Though they are loyal to a fault, High Elves love intrigue and politics. Unfortunately, this sometimes means that their armies are trusted to the care of individuals on the basis of the political faction they follow rather than their ability to lead.
Source: Warhammer Fantasy: 6th Edition
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The army's General is determined randomly. Before deployment, line up the character models and roll a dice. Count this number along the line - this is your General. If you roll over the number of characters in the army then the General is selected as normal instead. If you have six or more characters, choose five of them to line up, and then roll as above.