The project manager is always the one who chairs project status meetings, regardless of who's present.
The benefits of status meetings are:
- Team members will share the issues their facing and the thoughts they have about the project.
- Everyone will have a clear idea on what everyone else is doing.
- The project manager will be able to notice any "hidden conflicts" between team members, and will be able to act proactively.
- Team members will be able to see that the project is actually in progress, which will motivate them.
- Potential delays in the schedule will be caught during status meetings (for example, a resource who did not finish his task on time) and will be addressed immediately (for example, adding another resource to the task, especially if it's on the critical path).
Now if you mean status meetings that involve the stakeholders but not the team, then the benefits are:
- Giving the stakeholders a clear view of the progress of the project, alerting them of any risks/issues, and advising on the best course of action in case there is a problem on the project.
- Allowing stakeholders to give their feedback about the project, and to share their thoughts with other stakeholders.
- Allowing stakeholders to immediately assess the impact of their proposed change requests on the project.