Re the question of policy vs by-laws, I understand that there is a middle ground. A by-law is created and approved at an AGM/EGM by the Owners Corporation that allows for specific limited rules to be set by the Strata Committee at their meeting, and changed also at the Strata Committee level if required.
An example of this may be the fee charged for something such as a security key. If the price was enshrined in a by-law, then to increase the price say every five year the by-law would have to be replaced. Another example may be the process to be followed for moving in and out. While 80% of people will happily follow the guidance they are given by a Strata Committee / Strata Manager / Building Manager, there is the 20% or so that need the guidance to be enforceable, or they will willfully ignore and inconvenience all around them.