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If you own a corporation with other shareholders, having a shareholder agreement is crucial. The law does not specify what happens if a shareholder dies, gets divorced, becomes disabled, or if there are disputes among shareholders. Without a legally binding agreement, there is no mechanism for one shareholder to force another out or to buy out their shares. Even if the shareholding is evenly split or uneven, a written shareholders agreement is necessary. In the event of death, the company does not automatically buy back shares unless specified in the agreement. A shareholders agreement should outline processes for handling these situations.