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I would like to create an OU that only has the permission to create and manage Distribution Groups for email purposes. Is that possible and what is the permission required?

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The OU does not have a permission itself. You give permissions to users do things in that OU. – iPath Nov 9 '15 at 19:46

In ADUC, right-click on an OU and choose "delegate control," choose a group, and give them "modify the membership of a group."

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