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In the YouTube video tutorial, Matthew explains how to create a shareholder agreement using legal templates available online. He guides viewers through accessing the business forms section, searching for the shareholder agreement form, and filling in details such as company name, address, and shareholder information. The process involves selecting a state, providing company representative details, and specifying the number of shares for each shareholder. The tutorial offers a practical step-by-step guide to creating a shareholder agreement for business purposes.