You Cannot Create Folders Under the Public Folders Root Regardless of Effective Rights
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This topic provides information about how to troubleshoot an issue in which you cannot create new folders under the public folders root. This issue may occur even if you have permission to create new folders under the public folders root.
When you try to create a new folder under the public folders root, you receive the following error message:
When the Create top level public folder permission is set on the public folder root, you expect to be able to create a public folder off the public folder root.
The Create public folder permission is granted to the Everyone group. However, this permission lets you create a subfolder in the public folder only when you are the owner of the public folder.