I would look to the proper classification as an employee v. independent contract.  Here is an IRS resource for making the determination: https://www.irs.gov/pub/irs-pdf/p1779.pdf

If the shareholder has a separate management company that manages the corporation, then a 1099-MISC would be issued.  1099-MISC would go to a legal entity or if a sole proprietorship then to the individual.

Thank you,

Mike D'Avolio

Intuit