I think Stuarts call is fine and within the rules, not against them as has been stated: RRoP states that there are two methods to manage the blinds and button (Version 11, Button and blind use, point 2 a&b):
a) A Moving button, the button moves on one position each hand and the blinds are posted accordingly, this may resulti n more than on big blind.
or
b) Dead button, The big blind is posted by the person next due for it, and the small blind and button are positioned accordingly, this may result in a bdead button or small blind.
TDA rule# 24 says a dead button will be used.
This means that the button can skip the seats and let the new players play their first hand, as it is the BIG BLIND that moves on a seat and not the button.
Lewis