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The village of Greenwood receives authority from the Municipal Government Act, Part 18 – Villages.

The village commission is composed of five residents who serve a term of three years. The village of Greenwood has a Nomination Day By-Law, if more than one nomination is received for each vacant commission position, the election takes place at the Annual General Meeting.

The village commission must hold an Annual General Meeting, prior to July 1 each year. At the AGM the Chairman's report is read, the audited financial statement is presented and elections are held.