nyonyakay – the By-Law that you cite has been around in various iterations of the Legislation governing the operations and management of NSW strata schemes since 1973, and in fact it’s quoted at Model By-Law #6 in Schedule 2 of the current NSW Strata Schemes Management Regulation (2010).
What all that means is that as the By-Law relating to the “behaviour of owners and occupiers” has been embodied in relevant Legislation since 1973, then provided your scheme’s Title was itself Registered at any time after that year, then that By-Law automatically applies!
So provided your Executive Committee (E/C) reasonably believes that an occupier, whether an owner or a tenant, has contravened By-Law #6 then it can instruct the Strata Manager to issue that person with a Notice to Comply using THIS proforma, and if there’s a further breach by that person within 12 months then the E/C can on behalf of the Owners Corporation (O/C) apply to the NSW Civil and Administrative Tribunal for an enforceable Penalty of $550 to be issued to them.
In the unlikely circumstance that the Strata Manager has not been delegated to issue Notices to Comply on behalf of the O/C, then the E/C needs to formally meet to in order to resolve to do that, to minute its decision, and thereafter to provide those minutes and a written instruction to the Strata Manager accordingly.
I hope that clarifies the correct procedures in NSW.