A Shareholder Agreement is a legal document that outlines the rights and responsibilities of shareholders in a company. It serves to protect the interests of all parties involved by detailing how decisions are made, how shares can be bought or sold, and what happens if a shareholder wants to exit the company. This agreement helps prevent disputes and ensures smooth operations within the business. Typically, a Shareholder Agreement includes provisions about voting rights, dividend distribution, and the process for resolving conflicts. It may also address issues like confidentiality and non-compete clauses, ensuring that all shareholders are on the same page regarding the management and future of the company.