Well, yes, it's in Lave of course, isn't it?
No. It should be a constitutional monarchy based in a democracy... somewhere like Zaeredre in G5.
I was referring to the fact that for all we know "Her Imperial Majesty" most probably means the leader of Lave. At least that's the only sensible explanation that I've ever come across. I don't recall at the moment whether it's on Selezen's website, in the Wiki, or buried somewhere on the boards.
If on the Wiki, one maybe would have to look back to page revisions previous to the release of Galactic Navy.oxp. The creator of the OXP changed the Elite backstory (and the Wiki) considerably in order to accommodate the massive military he created. I see that as a deviation from Elite canon, but because not many people are aware of that, and the OXP is one of the most recommended for newbies, this deviation from canon has (for many players) turned into canon. For me personally, one of the central points of canon, and in fact one of the defining characteristics of GalCop as an organisation is that it doesn't have a considerable naval force. The whacky and oddly-named "Her Imperial Majesty's Space Navy" that you encounter in the two native missions is really all there is. It's mostly invisible, simply because there doesn't exist much to show. 16 capital ships (I'm in favour of Behemoth.oxp), an unspecified number of small fighters, and every licensed pilot as a reserve, that's it.