Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 214

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 9
Chunk 214
---
 the need for
physical transfer of securities. Transactions must be settled in pesos except under limited circumstances and in respect of limited transactions
in which settlement in foreign currencies may be permitted.

  124  

  Table of Contents  

Market Regulation

In 1925, the Mexican National Banking Commission (Comisión
Nacional Bancaria) was established to regulate banking activity and in 1946, the Mexican Securities Commission (Comisión
Nacional de Valores) was established to regulate stock market activity. In 1995, these two entities merged to form the CNBV.

Among other things, the CNBV regulates the public offering
and trading of securities, public companies and their regime and participants in the Mexican securities market (including brokerage houses
and the Mexican Stock Exchange), and imposes sanctions for the illegal use of insider information and other violations of the LMV. The
CNBV regulates the Mexican securities market, the Mexican Stock Exchange, and brokerage firms, through its staff and a board of governors
comprised of 13 members.

Mexican Securities Market Law

The current Mexican Securities Market Law was enacted on December
8, 2005, published in the Official Gazette of the Federation (Diario Oficial de la Federación) or Official Gazette of the
Federation on December 30, 2005, and became effective on June 28, 2006. The LMV changed Mexican securities laws in various material respects
to further align Mexican laws with the securities and corporate governance standards laws in effect in other jurisdictions that maintained
more developed securities markets.

In particular, the LMV:

  establishes the sociedad anónima promotora de inversión, a form of corporate organization that permits agreements                       

  establishes the variable capital public stock corporation, a corporate form of organization that is subject to the general requirements  

  includes private placement exemptions directed to Mexican institutional and qualified investors, and specifies the requirements that  

  includes improved rules for tender offers, dividing them in either voluntary or mandatory;  

  establishes standards for disclosure of holdings applicable to shareholders of public companies;  

  expands and strengthens the role of the board of directors of public companies;  

  defines the role of the chief executive officer and other relevant officers of public corporations;  

  defines the standards applicable to the board of directors and the duties and potential liabilities and penalties applicable to each      

  replaces the statutory auditor ( comisario) with the audit committee and establishes the corporate governance committee with  

  improves the rights of minority shareholders (including rights to initiate shareholders