A shareholder agreement is not only a contract between the shareholders who sign it, it can also be binding on the corporation and its directors. Also, it can include a provision that requires any subsequent shareholders to agree to be bound by the shareholder agreement as a condition of acquiring shares in the corporation. This broad and lasting effect can provide significant comfort. For example, it is often used to protect the interests of a minority shareholder. It is also regarded as an important planning tool in which shareholders have the ability to set out their agreement on what procedures would apply on the death, insolvency or disability of a shareholder, or a shareholder’s desire to sell shares some or all of their shares. It is a powerful instrument that ranks with the Articles of Incorporation and bylaws in terms of its importance for a corporation.