diff --git a/source/smbd/posix_acls.c b/source/smbd/posix_acls.c
index 75cca51..5ccfb26 100644
--- a/source/smbd/posix_acls.c
+++ b/source/smbd/posix_acls.c
@@ -3424,7 +3424,6 @@ NTSTATUS set_nt_acl(files_struct *fsp, uint32 security_info_sent, const SEC_DESC
 	NTSTATUS status;
 	uid_t orig_uid;
 	gid_t orig_gid;
-	bool need_chown = False;
 
 	DEBUG(10,("set_nt_acl: called for file %s\n", fsp->fsp_name ));
 
@@ -3460,14 +3459,12 @@ NTSTATUS set_nt_acl(files_struct *fsp, uint32 security_info_sent, const SEC_DESC
 	}
 
 	/*
-	 * Do we need to chown ?
+	 * Do we need to chown ? If so this must be done first as the incoming
+	 * CREATOR_OWNER acl will be relative to the *new* owner, not the old.
+	 * Noticed by Simo.
 	 */
 
 	if (((user != (uid_t)-1) && (orig_uid != user)) || (( grp != (gid_t)-1) && (orig_gid != grp))) {
-		need_chown = True;
-	}
-
-	if (need_chown && (user == (uid_t)-1 || user == current_user.ut.uid)) {
 
 		DEBUG(3,("set_nt_acl: chown %s. uid = %u, gid = %u.\n",
 				fsp->fsp_name, (unsigned int)user, (unsigned int)grp ));
@@ -3507,9 +3504,6 @@ NTSTATUS set_nt_acl(files_struct *fsp, uint32 security_info_sent, const SEC_DESC
 		orig_mode = sbuf.st_mode;
 		orig_uid = sbuf.st_uid;
 		orig_gid = sbuf.st_gid;
-
-		/* We did chown already, drop the flag */
-		need_chown = False;
 	}
 
 	create_file_sids(&sbuf, &file_owner_sid, &file_grp_sid);
@@ -3660,24 +3654,9 @@ NTSTATUS set_nt_acl(files_struct *fsp, uint32 security_info_sent, const SEC_DESC
 		}
 
 		free_canon_ace_list(file_ace_list);
-		free_canon_ace_list(dir_ace_list); 
+		free_canon_ace_list(dir_ace_list);
 	}
 
-	/* Any chown pending? */
-	if (need_chown) {
-		DEBUG(3,("set_nt_acl: chown %s. uid = %u, gid = %u.\n",
-			 fsp->fsp_name, (unsigned int)user, (unsigned int)grp ));
-		
-		if(try_chown( fsp->conn, fsp->fsp_name, user, grp) == -1) {
-			DEBUG(3,("set_nt_acl: chown %s, %u, %u failed. Error = %s.\n",
-				 fsp->fsp_name, (unsigned int)user, (unsigned int)grp, strerror(errno) ));
-			if (errno == EPERM) {
-				return NT_STATUS_INVALID_OWNER;
-			}
-			return map_nt_error_from_unix(errno);
-		}
-	}
-	
 	return NT_STATUS_OK;
 }