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In this video, Matthew demonstrates how to create a shareholder agreement using legal templates. He provides a link to access the necessary forms and navigates to the business forms section, highlighting that there are over 110 available templates. Matthew uses a search function to find the shareholder agreement template, selects Texas as the state, and proceeds to create the document. He guides viewers to input essential information, including the company's name (e.g., MK Tips), address details, the name of the company representative (CEO or managing director), and the shareholders along with their respective number of shares, indicating that additional shareholders can be added as needed.