Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 236

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 10
Chunk 236
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 compensations matters; and  

  assist our board of directors in the preparation of reports for the annual shareholders’ meeting.  

Preemptive Rights

Under Mexican law, our shareholders (holding shares directly
or through CPOs) have preemptive rights for all share issuances except in the cases noted below. Generally, if we issue additional shares
of capital stock, our shareholders will have the right to purchase the number of shares necessary (or CPOs, subject to applicable U. S.
securities laws, representing such shares and subject to the CPO trustee being permitted to issue or release the necessary additional
CPOs) to maintain their existing ownership percentage. Shareholders must exercise their preemptive rights within the time period set forth
by our shareholders at the meeting approving the relevant issuance of additional shares. This period must be equal to at least 15 days
following the publication of notice of the issuance in the official newspaper or our corporate domicile and in the electronic system implanted
by the ministry of economy. Under Mexican law, shareholders cannot waive their preemptive rights in advance, and preemptive rights may
not be represented by an instrument that is negotiable separately from the corresponding share.

The preemptive rights specified in the prior paragraph will
not apply (i) in the case of shares issued in connection with mergers, (ii) in the case of resale of shares held in our treasury, as a
result of repurchases of shares conducted on the Mexican Stock Exchange or otherwise, (iii) in the event that holders of our shares entitled
to vote approve the issuance of the unsubscribed shares for purposes of a public offering at an extraordinary shareholders’ meeting
called for such purpose provided requirements specified in Article 53 of the LMV are satisfied, and (iv) in respect of shares issued for
conversion of any convertible securities.

If we issue new Series A shares for cash, in accordance with
our by-laws and the CPO trust, non-Mexican holders of our CPOs (directly or through ADSs) may not exercise their preemptive rights, unless
we cause the CPO trustee to issue additional CPOs (to the extent possible), to permit the non-Mexican holders of CPOs to exercise preemptive
rights by purchasing and holding newly issued Series A shares through CPOs. Although we expect to take all measures necessary to maintain
sufficient CPOs available to permit non-Mexican holders of CPOs to exercise preemptive rights in respect of