Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 234

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 10
Chunk 234
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 the duty of loyalty will not arise if the director acted in good faith and
(i) complied with applicable law and our by- laws, (ii) acted based upon facts and information provided by officers, external
auditors or third-party experts, the capacity and credibility of which may not be the subject of reasonable doubt, and (iii) selected
the more adequate alternative in good faith, or if the negative effects of the director’s decision could not have been reasonably
foreseeable, based upon the then available information.

Mexican courts have not yet interpreted the meaning of this
provision and, as a result, the extent and enforceability of this safe harbor remains uncertain.

Under the LMV and our by-laws, our chief executive officer
and our principal officers are also required to act for our benefit and not for the benefit of a shareholder or group of shareholders.
Our officers are required to submit to the board of directors for approval, the principal strategies for our business and the business
of the companies we control, to submit to the audit committee proposals relating to internal control systems, to prepare all material
information related to our activities and the activities of the companies we control, to disclose all material information to the public,
to maintain adequate accounting and registration systems and internal control mechanisms, to prepare and submit to the board the yearly
financial statements, and to implement internal control mechanisms.

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  Table of Contents  

Committees of the Board of Directors

Like all public companies in Mexico, we are required to have
an audit committee and corporate governance committee. The members of each of our audit committee and corporate governance committee must
be independent members, elected by our board of directors except for the chairman of each committee who is elected by our shareholders.
Our audit committee and corporate governance committee are required to prepare annual reports, to be submitted to our board of directors.
The audit committee’s report must include (i) a report of our internal control systems and our internal audit procedures and any
deficiencies, (ii) the evaluation of our external auditors, (iii) the results arising from the review of our financial statements, and
(iv) any amendments to our accounting policies. The quorum for any session of our audit committee and corporate governance committee is
the majority of its members and decisions must be taken by majority of its members.

In addition, our audit committee has the following principal
duties:

  call shareholders meetings and request the inclusion of matters in the agenda;  

  supervise and evaluate our external