Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 221

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 9
Chunk 221
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 similar obligations. The law also provides
exceptions to the mandatory tender offer requirements and specifically sets forth remedies for non-compliance with these tender offer
rules ( e. g., suspension of voting rights, possible annulment of purchases, etc.) and other rights available to prior shareholders
of the issuer.

Joint Trading of Common Shares and Limited or Non-Voting
Shares

The LMV does not permit issuers to implement mechanisms for
common shares and limited or non-voting shares to be jointly traded or offered to public investors, unless the limited or non-voting shares
are convertible into common shares within a period of up to five years, or when, because of the nationality of the holder, the shares
or the securities representing the shares limit the right to vote to comply with foreign investment laws. In addition, the aggregate amount
of shares with limited or non-voting rights may not exceed 25% of the aggregate amount of publicly held shares. The CNBV may increase
this 25% limit by an additional 25%, provided that the limited or non-voting shares exceeding 25% of the aggregate amount of publicly
held shares are convertible into common shares within five years of their issuance.

Anti-Takeover Protections

The LMV provides that public companies may include anti-takeover
provisions in their by-laws if such provisions (i) are approved by a majority of the shareholders, without shareholders representing 20%
or more of the capital stock present at the meeting voting against such provision, (ii) do not exclude any shareholders or group of shareholders,
(iii) do not restrict, in an absolute manner, a change of control, and (iv) do not contravene legal provisions related to tender offers
or have the effect of disregarding the economic rights related to the shares held by the acquiring party.

Board of Directors and Committees

Under the LMV, public companies must have a board of directors
comprised of no more than 21 members, of which at least 25% must be independent. Independent members must be selected based on their experience,
ability and reputation at the issuer’s shareholders’ meeting; whether or not a director is independent must be determined
by the issuer’s shareholders and such determination may be challenged by the CNBV. As a departure from legislative precedents, the
LMV permits then-acting members of the board of directors (as opposed to shareholders) to select, under certain circumstances, on a temporary
basis, new members of the board of directors