Bylaws are created and changed by special resolution of the corporation. Rules are created by the board, and may be changed/rescinded by the corporation using an ordinary resolution. Bylaws can be enforced through imposition of monetary sanctions, while rules cannot. When courts are asked to decide on enforcing a bylaw or a rule, they will consider whether it was properly enacted/passed, the fairness and the reasonableness of the proposed enforcement, and they are particularly concerned about the fairness of the process and how much notice owners were given.
