Is a share-holder of company A who is paid for business travel costs by company A but does not receive any wages from company A and spends all their working hours for company B which has no relationship with company A, taxed as an "employee" (W-2) or "non-employee" (1099) of company A for receiving the reimbursement for travel costs that he/she pockets zero dollars?
A very similar question was asked before, and I replied to that. There is a huge difference here: A shareholders cost of travelling to a shareholder meeting is their private business. They may be able to deduct it from the taxes they pay on their gains as a shareholder, but the company absolutely cannot book this as an expense.
If the company pays this travel cost, they may have to justify this to other shareholders (they can’t just hand over money to one shareholder and not give anything to the others), and the payment should be booked not as an expense reducing the company’s taxes, but as a dividend payment which is not an expense and not tax deductible, but the share holder would be responsible for paying the right amount of taxes on the dividend.