WA: Can sociocracy work within WA strata governance rules?

Question: Can sociocracy (dynamic governance) be used in a strata company while remaining consistent with the Act?

Can a governance method called sociocracy (dynamic governance) be used in a strata company in WA and remain consistent with the Strata Titles Act 1985 (the Act)?

Answer: Yes, but only as an internal decision-making process. Sociocracy cannot replace the statutory governance structure set out in the Act.

A strata company in Western Australia may choose to use sociocracy or “dynamic governance” principles to help guide how the council of owners collaborates, discusses issues, or reaches consensus. However, these methods cannot replace, override, or conflict with the governance structure set out in the Act and the Schedule 1 Governance By-laws.

What the Act requires

Regardless of any alternative governance model adopted internally, a strata company must still comply with the statutory framework, including:

• The strata company is the legal decision-maker (section 14).
• The council of owners carries out the functions of the strata company between general meetings (Schedule 1, by-law 8).
• Council decisions must be made by a majority vote of council members present and entitled to vote (Schedule 1, by-law 10).
• Owners at a general meeting make decisions by ordinary, special or unanimous resolution, depending on the matter.

These requirements are mandatory and cannot be displaced by adopting a different governance philosophy.

Where sociocracy can fit

Sociocracy can be used as an internal process to:

• structure discussions
• encourage consent-based decision-making
• improve communication
• help the council reach a majority position more collaboratively

As long as the final decision is still made in the manner required by the Act (e.g., majority vote at council level, or the appropriate resolution at a general meeting), the use of sociocratic methods is permissible.

Where sociocracy cannot be used

A strata company cannot:

• replace majority voting with “consent-based” decision-making
• create governance circles that have authority beyond the council
• delegate statutory powers in a way not permitted by the Act
• adopt any process that prevents owners from exercising their voting rights under the legislation

If a sociocratic practice conflicts with the Act or the Schedule 1 by-laws, the statutory requirements prevail.

This post appears in the August 2026 edition of The WA Strata Magazine.

Luke Downie
WA Strata Consultant
E: luked0876@gmail.com
P: 0456 589 639