The setgid bit on a directory When a directory has the setgid bit set any files created in that directory will have the same group membership as the directory: any directories created in that directory will have the setgid bit set $ id uid=1010(bri) gid=1010(bri) groups=1010(bri),2030(friends) $ umask u=rwx,g=rx,o= # umask 027 $ mkdir dir $ chgrp friends dir $ cd dir $ ls -ld . drwxr-x--- 2 bri friends 4096 Apr 19 4:43 . $ touch file; ls -l file -rw-r----- 1 bri bri 0 Apr 19 4:43 file