The theory states that all complex organizations, regardless of how democratic they are when started, eventually develop into oligarchies
All organizations eventually come to be run by a "leadership class", who often function as paid administrators, executives, spokespersons, political strategists, organizers, etc. for the organization. Far from being "servants of the masses", "leadership class," rather than the organization's membership, will inevitably grow to dominate the organization's power structures.
By controlling who has access to information, those in power can centralize their power successfully, often with little accountability, due to the apathy, indifference and non-participation most rank-and-file members have in relation to their organization's decision-making processes.
Democratic attempts to hold leadership positions accountable are prone to fail, since with power comes the ability to reward loyalty, the ability to control information about the organization, and the ability to control what procedures the organization follows when making decisions.
Thus representative democracy is a façade legitimizing the rule of a particular elite