Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 237

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 10
Chunk 237
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 underlying Series A shares,
no assurances can be made that we will be able to do so, particularly because regulatory approvals in Mexico are necessary for the issuances
of additional CPOs. Mexican holders of Series A shares may exercise their preemptive rights if we issue new Series A shares for cash.
Non-Mexican holders of CPOs may suffer dilution if we issue new Series A shares in exchange for cash and CPOs are not available to represent
the additional Series A shares.

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  Table of Contents  

Dividends

Our board of directors must submit our financial statements
for the previous fiscal year, proposed and prepared by our chief executive officer and supplemented by a report of our board of directors,
at our annual ordinary general shareholders’ meeting for approval. Once our shareholders approve our financial statements, they
are required to allocate net profits for the previous fiscal year. Under Mexican law and our by-laws, prior to any distribution of dividends,
5% of our net earnings must be allocated to a legal reserve fund, until such legal reserve fund is equal to at least 20% of our paid-in
capital stock. Additional amounts may be allocated to other reserve funds as the shareholders may determine, including the amount allocated
to the reserve fund for the repurchase of shares. The remaining balance, if any, may be distributed as dividends. See Item 8: “ Financial
Information - Consolidated Statements and Other Financial Information - Dividend Policy.”

Redemption

In accordance with our by-laws, shares representing our capital
stock are subject to redemption in connection with either (i) a reduction of capital stock, or (ii) a redemption with retained earnings,
which in either case must be approved by our shareholders. In connection with a capital reduction, the redemption of shares will be made pro rataamong the shareholders but in no case will the redemption price be less than the book value of such shares as determined
pursuant to our latest statements of financial position approved at a general ordinary shareholders’ meeting or by means of a tender
offer conducted on the Mexican Stock Exchange at prevailing market prices, in accordance with the Mexican Corporations Law, the LMV and
our by-laws.

Dissolution or Liquidation

Upon our dissolution or liquidation, our shareholders will
appoint one or more liquidators at an extraordinary general shareholders’ meeting to wind up our affairs. All fully paid and outstanding
shares of capital stock will be entitled to participate equally in any liquidating distributions.

Certain Minority Prote