Who must prepare the director's report?

The director's report is a formal document that is required to be prepared by the Board of Directors of a company. This report provides shareholders and stakeholders with essential information about the company's performance, strategy, and governance practices, as well as a review of financial results and future outlook. The responsibility lies with the Board of Directors because they are tasked with overseeing the management of the company and ensuring that its operations align with the interests of shareholders.

External accountants can assist in the financial reporting process, but they do not have the authority or accountability to prepare the director's report themselves. The marketing team focuses on promoting the company’s products and services and does not have a role in drafting the report. Shareholders, while they are the recipients of the report, do not have the responsibility to create it; rather, they depend on the information disclosed by the Board.

Therefore, the obligation of preparing the director's report clearly falls to the Board of Directors, making this choice the correct answer.