THE Museum of Australian Democracy at Eureka will operate as a not-for-profit company with a skills-based board.
However, Ballarat City Council will still be its sole owner.
The council last night voted on MADE's governance structure, which will include a constitution, and a service level agreement and memorandum of understanding between the company and the council.
Ballarat City Councillor Cheryl Bromfield said it was a "solid structure of governance".
Councillor Samantha McIntosh said the constitution would guide the board to a very healthy position.
The board will include six members and one councillor, while the MADE director will be an ex-officio position.
The board members will be selected from academic, financial, fundraising, IT, education, history/museums and tourism sectors.