Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 233

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 10
Chunk 233
---
 from us all information that may be necessary to make decisions, (ii) obtaining information from third parties, (iii) requiring
the attendance of, and information from, our officers that may be necessary to make decisions, and (iv) attending board meetings
and disclosing to the board of directors material information in possession of the relevant director. Failure to act with care by a director
subjects the relevant director to joint and several liability with other directors involved in the act, for damages and losses caused
to us and our subsidiaries. An indemnity for claims related to a breach of a director’s duty of care has been incorporated into
our by-laws. Furthermore, we carry insurance to protect our directors for breaches of their duty of care.

The duty of loyalty consists, primarily, of a duty to maintain
the confidentiality of information received in connection with the performance of a director’s duties, to abstain from discussing
or voting on matters where the director has a conflict of interest and to abstain from taking advantage of corporate opportunities resulting
from its actions as a director. In addition, the duty of loyalty is breached if a shareholder or group of shareholders is knowingly favored.

The duty of loyalty is also breached if the director uses
corporate assets or approves the use of corporate assets in violation of our policies, discloses false or misleading information, orders
not to or causes the failure to, register any transaction in our records that could affect our financial statements, or causes material
information not to be disclosed or to be modified.

The violation of the duty of loyalty will render the breaching
director jointly and severally liable with all breaching directors, for damages and losses caused to us and to the persons we control.
Liability may also arise if damages and losses result from benefits obtained by the directors or third parties as a result of activities
carried out by such directors.

Claims for breach of the duty of care and the duty of loyalty
may be brought solely for our benefit (as a derivative suit), as opposed to for the benefit of the claimant, and may only be brought by
us or by shareholders or groups of shareholders representing at least 5.0% of our outstanding shares. Claims may be exercised by the trustee
issuing CPOs or by holders of CPOs, in each case holding underlying shares representing at least 5% of our outstanding Series A shares.

As a safe harbor for the benefit of directors, the LMV provides
that liabilities arising from a breach of the duty of care or