No better use

[Alter Tuk]

No better use
Playable on a character during your organization phase. One time you may tap your character to place an opponent's character "off to the side", with this card. Do this in lieu of making opponent's character's body check in company vs. company combat with your opponent's company. Discard all cards on opponent's character. If your character becomes wounded or leaves active play, discard this card-opponent's character then forms a company at your character's current or new site. During the site phase at Shelob's Lair, your character may tap and discard this card to eliminate opponent's character-whom you then receive as kill marshalling points.

Ist the character still wounded if he forms a new company?

I got the combo started but my Troll got flunged away.

[Bandobras Took]

There is nothing to indicate that he heals, and cards placed off to the side usually can't be affected by anything, so I don't see how the character in question could heal. I would say they are still wounded.

[Alter Tuk]

After not getting the combo out again (f****ing unabated in malice.... ) another question:

What does "Discard all cards on opponent's character." mean? Followers, too?

Similar cards:

The Arkenstone
Unique. +5 to bearer's direct influence against Dwarves and Dwarf factions. Each Dwarf in play has +1 mind. If the bearer of this item is at the same site as a Dwarf character, you may discard this item to force the discard of the Dwarf (and all cards he controls).

Here it was ruled by an errata that followers are not discarded.

Sacrifice of Form
Spell. Wizard only. All of the strikes from one attack against your Wizard's company fail; +3 to any body checks made to determine of the attack is defeated. Discard the Wizard (i.e., he becomes unrevealed) and any non-item cards he controls. Place any items he controls under this card and keep these off to the side (these items are considered to still be in play). If the Wizard is put back into play, return his items to him and place Sacrifice of Form with him. Wizard receives +1 to his prowess, body, and direct influence. May not be duplicated on a given Wizard.

Here followers definately wander to your discard pile but attend to the different phrases "Discard all cards on opponent's character" (No better use) and "Discard ... any non-item cards he controls.

[Bandobras Took]

A card played on another card is not necessarily synonymous with being controlled by that card.

For example, Await the Advent of Allies is a card played on a character. A Dagger of Westernesse would be controlled by that character, but is not necessarily played "on" that character.

What this means for No Better Use, quite frankly, puzzles me, too.