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In NSW, any By-Law that’s required in addition to the standard or model by-laws that are included as Schedules to the Strata Schemes Management Act & the Regulation is called a “Special By-Law”.
With regard with “how all this happens”, the Owners Corporation’s (O/C) consent for the awning, which is apparently an addition to the Common Property in the instance you have given, needs to be given by ≥75% of Owners present personally or by proxy at a General Meeting voting in favour.
In the instance you reference, that consent by the Owners Corporation together with any approvals required by the Local Council is all that’s necessary for the Owner concerned to go ahead with the awning.
However if for example your O/C is anticipating future requests for the addition of awnings by other Owners and it wants to avoid each of those coming to a General Meeting, then it can draft a Special By-Law that’s consistent with the wording of its initial consent and apply that as a “blanket consent” to those future requests. By the way, both the O/C’s consent any matching Special By-Law needs to (at least) provide for both prior Council approval when required, and who it is that will be responsible for the on-going maintenance of that structure; usually the Owner from time-to-time of the Lot.
If someone on your O/C is capable of wording both the consent (in the minutes) and the matching Special By-Law in explicit and unambiguous plain language (not faux legalese), then that wording can be shown on or included as an attachment to this Form, and be submitted to NSW Land & Property Information for Registration on your Plan’s Strata Title for a Fee of $102.
If there’s nobody confident of being able to properly word the Special By-Law, including an explanation of those provisions that form parts of the O/C’s consent, then just use the consent method for each individual addition of the type now proposed, or have the documents prepared by a specialist Strata Lawyer (there’s one who’s a sponsor of this Forum and whose details appear on the banner at the top of FlatChat’s Homepage).