Matt
Your question highlights a number of common misconceptions about strata – don’t worry, you are not alone.
Firstly, the overriding power in a strata scheme is the owners corporation (OC) in General Meeting. The executive committee (EC) acts on the Owner’s Corps behalf but its decisions can be rescinded or directed by the OC. In other words the Owners Corp in general meeting is the boss of the EC.
The strata manager (SM) can only act as instructed by the Owners Corp or EC although the SM may have delegated powers to act as and when required. These delegated powers can be removed or over-ruled in specific instances by the Owners Corp or EC. In a dispute over what to do in a specific situation, the Owners Corp rules.
The caretaker can be instructed by the strata manager to undertake certain duties but they can only be within the terms of their contract. The care taker can also be instructed by the EC (as the Owners Corps representative) to fulfill specefic duties under the terms of their contract.
The detail of the contract is the beginning and end of the relationship with the caretaker. For instance, the contract could conceivably state that the caretaker only takes instruction from the strata manager (or EC chair … or whoever).
The caretaker can’t create by-laws and neither can the EC. Only the Owners Corporation in a General Meeting can agree to or “enact” by-laws (and even then by a 75 percent vote in favour).
Hope this clarifies a few things for you.