A Microsoft app for iOS and Android devices that enables authentication with two-factor verification, phone sign-in, and code generation
This is not Microsoft Support; it's an online forum where both individual customers like me and also some Microsoft employees provide direction and aid to [other] Microsoft customers including some information that support might normally provide, but as such those here have no access to accounts or other internal information related to them.
I'll start with the simple fact that since this is a company account and the death of a single individual has caused this issue, that means you urgently need to hire someone with IT experience, which for a small organization is most often an outside contractor or similar technical individual, since they'd have been able to aid in resolving this long ago along with any other operational issues relating to your IT technology.
If someone else within the organization was hired to perform this duty, they should already have the direct access required through their own account as a backup, but if this was truly a personal account the director was using and not actually corporate, then you'd only be able to use the legal method in that document I provided above.
Assuming it's corporate, but the director never took the steps to create a backup, then you'll need to try using the steps to recover a Microsoft 365 (e.g. Office 365) or Azure tenant account, which since I'm not personally using either of these, I have minimal knowledge, so I'll direct you instead to one of many questions here answered both by AI and also a Microsoft External Staff Moderator, so you can see the typical processes required to recover a business account.
Recovering access to my Azure tenant. - Microsoft Q&A
Though that particular thread had the added complication that the Azure Tenant subscription had also been deleted, which may not be true in your case, you do have the added issue of the director's death, which may make proving ownership difficult if the account was registered in his name rather than the company, so it's likely a good example for your issues.
In general, what you'll need to do is start a new thread here stating clearly in the title and thread the primary fact that the access to the [business account type, Microsoft 365 and/or Azure tenant] Admin account has been lost due to the death of the original account owner and asking that a case be opened with the Data Protection team through a support ticket.
This new thread and title will typically receive more immediate attention from the Microsoft External Employee Moderators that have the access to escalate your request directly to the proper team, along with helping you identify the details required in order to prove your company actually owns the account, so that the internal process with the Data Protection Team can commence.
Hopefully this helps you properly begin the process of account recovery, though it typically still takes at least several days beyond the initial exchange of information with the Microsoft Employee Moderator here.
Rob