Wait, does this mean no fighting on after being occupied, or did the allies not join and was he annexed for that reason (I truly hope so...)
I don't quite understand if he joined the allies or not. The score screen says the allies have 7 members. We see Great Britain, France, British Raj, Australia and Canada. But Britain should have Nepal, Bhutan, Oman and Yemen as puppets and part of the allies as well? So thats already not working out.
Anyway, you continue to fight from overseas territory if you surrender. I'm not aware poor Poland ever had overseas territory. But yeah, I understood it like you continue playing if you are part of a faction, although there is not much to play if you have no units and territory left.