diff --git a/cache.h b/cache.h
index c12957bb03..e1e8ce80ed 100644
--- a/cache.h
+++ b/cache.h
@@ -719,8 +719,7 @@ enum sharedrepo {
 	PERM_EVERYBODY      = 0664
 };
 int git_config_perm(const char *var, const char *value);
-int set_shared_perm(const char *path, int mode);
-#define adjust_shared_perm(path) set_shared_perm((path), 0)
+int adjust_shared_perm(const char *path);
 int safe_create_leading_directories(char *path);
 int safe_create_leading_directories_const(const char *path);
 int mkdir_in_gitdir(const char *path);
diff --git a/path.c b/path.c
index 2fdccc2f18..04ff1487ed 100644
--- a/path.c
+++ b/path.c
@@ -1,14 +1,5 @@
 /*
- * I'm tired of doing "vsnprintf()" etc just to open a
- * file, so here's a "return static buffer with printf"
- * interface for paths.
- *
- * It's obviously not thread-safe. Sue me. But it's quite
- * useful for doing things like
- *
- *   f = open(mkpath("%s/%s.git", base, name), O_RDONLY);
- *
- * which is what it's designed for.
+ * Utilities for paths and pathnames
  */
 #include "cache.h"
 #include "strbuf.h"
@@ -405,26 +396,14 @@ const char *enter_repo(const char *path, int strict)
 	return NULL;
 }
 
-int set_shared_perm(const char *path, int mode)
+static int calc_shared_perm(int mode)
 {
-	int tweak, shared, orig_mode;
+	int tweak;
 
-	if (!shared_repository) {
-		if (mode)
-			return chmod(path, mode & ~S_IFMT);
-		return 0;
-	}
-	if (!mode) {
-		if (get_st_mode_bits(path, &mode) < 0)
-			return -1;
-		orig_mode = mode;
-	} else
-		orig_mode = 0;
 	if (shared_repository < 0)
-		shared = -shared_repository;
+		tweak = -shared_repository;
 	else
-		shared = shared_repository;
-	tweak = shared;
+		tweak = shared_repository;
 
 	if (!(mode & S_IWUSR))
 		tweak &= ~0222;
@@ -436,16 +415,28 @@ int set_shared_perm(const char *path, int mode)
 	else
 		mode |= tweak;
 
-	if (S_ISDIR(mode)) {
+	return mode;
+}
+
+
+int adjust_shared_perm(const char *path)
+{
+	int old_mode, new_mode;
+
+	if (!shared_repository)
+		return 0;
+	if (get_st_mode_bits(path, &old_mode) < 0)
+		return -1;
+
+	new_mode = calc_shared_perm(old_mode);
+	if (S_ISDIR(old_mode)) {
 		/* Copy read bits to execute bits */
-		mode |= (shared & 0444) >> 2;
-		mode |= FORCE_DIR_SET_GID;
+		new_mode |= (new_mode & 0444) >> 2;
+		new_mode |= FORCE_DIR_SET_GID;
 	}
 
-	if (((shared_repository < 0
-	      ? (orig_mode & (FORCE_DIR_SET_GID | 0777))
-	      : (orig_mode & mode)) != mode) &&
-	    chmod(path, (mode & ~S_IFMT)) < 0)
+	if (((old_mode ^ new_mode) & ~S_IFMT) &&
+			chmod(path, (new_mode & ~S_IFMT)) < 0)
 		return -2;
 	return 0;
 }