Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 204

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 6
Chunk 204
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 and 2024, 6,579,214 shares, 9,163,300 shares, and 10,492,330 shares, respectively, were held in trust under this plan as all shares granted remained unvested. Such shares were considered as treasury shares and considered outstanding for diluted earnings per share purposes because the holders are entitled to dividends if and when distributed.
 
C.   Board Practices
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Board Practices
 The members of our board of directors are elected annually at our ordinary general meeting of shareholders. All board members hold their positions for one year and may be reelected.

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Authority of the Board of Directors
 For a description of the authority of our directors, see Item 10: “Additional Information-Memorandum and Articles of Association—Provisions of Our By-laws and Mexican Law Relating to Directors.”
 Duty of Care and Duty of Loyalty
 The LMV imposes duties of care and of loyalty on directors.
 For a description of the duties of care and loyalty of our directors, see Item 10: “Additional Information—Memorandum and Articles of Association—Provisions of Our By-laws and Mexican Law Relating to Directors.”
 Restructuring of Committees of the Board of Directors
 On April 21, 2023, our shareholders approved a plan (the “April 2023 Committee Restructuring Plan”) to amend our by-laws and restructure the two committees of our board of directors. The audit and corporate governance committee was split into two committees: (i) the audit committee and (ii) the corporate governance committee. Additionally, the compensation and nominations committee ceased to exist and the corporate governance committee assumed its compensation and nomination duties.
 Audit Committee
 The LMV requires us to have an audit committee, which must be comprised of at least three independent members. The audit committee was established in April 2023 as a result of the 2023 Committee Restructuring Plan. We believe that all of the members of the audit committee are independent under the LMV and Exchange Act Rule 10A-3.
 The audit committee’s principal duties are to:
 
·   call shareholders meetings and request the inclusion of matters in the agenda;
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·   supervise and evaluate our external auditors and analyze their reports (including their opinion of our annual report);
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·   analyze and supervise the preparation of our financial statements and make recommendations to the board of directors on their approval;
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·   inform the board of directors of the status of our