You may receive an error message when you try to set permissions for a distribution group in Outlook
You cannot set folder permissions for a distribution group in Microsoft Outlook 2007 and later versions. Additionally, you may receive one of the following error messages:
Error message 1
Error message 2
One or more users cannot be added to the folder access list. Non-local users cannot be given rights on this server.
If you try to add a distribution group as a delegate, you may receive the following error message:
The modified permissions could not be saved.
The user UserName cannot be added. Non-local users cannot be given rights on this server.
Additionally, the prohibition sign appears next to the distribution group. The prohibition sign is circle with a line through it as shown in this screen shot.
This issue occurs because you are not permitted to set folder permissions or object permissions for a distribution group in Outlook 2007 and later versions.
To work around this issue, create security groups instead of distribution groups. Then, set folder permissions or set delegate permissions for the security groups.
This behavior is by design.
In earlier versions of Outlook and of Exchange Server, the Microsoft Exchange Information Store process automatically converts a distribution group to a security group.
For information about how to manually change a universal distribution group to a universal security group, visit the following MSDN website:
Article ID: 941318 - Last Review: 04/19/2016 18:37:00 - Revision: 2.1
Outlook 2016, Microsoft Outlook 2013, Microsoft Outlook 2010, Microsoft Office Outlook 2007
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