diff --git a/tests/acceptance/config/behat.yml b/tests/acceptance/config/behat.yml
index a00e3784eb1a..48c4263d115a 100644
--- a/tests/acceptance/config/behat.yml
+++ b/tests/acceptance/config/behat.yml
@@ -481,6 +481,7 @@ default:
         - WebUIHelpAndTipsContext:
         - WebUIGeneralContext:
         - WebUILoginContext:
+        - WebUISharingContext:
         - OccContext:
 
     webUIComments:
diff --git a/tests/acceptance/features/bootstrap/OccContext.php b/tests/acceptance/features/bootstrap/OccContext.php
index 02d266ff6d12..aa5276effa12 100644
--- a/tests/acceptance/features/bootstrap/OccContext.php
+++ b/tests/acceptance/features/bootstrap/OccContext.php
@@ -189,6 +189,31 @@ public function setExtStorageReadOnlyUsingTheOccCommand($mountPoint, $setting =
 		);
 	}
 
+	/**
+	 * @param string $mountPoint
+	 * @param boolean $setting
+	 *
+	 * @return void
+	 * @throws Exception
+	 */
+	public function setExtStorageSharingUsingTheOccCommand($mountPoint, $setting = true) {
+		$command = "files_external:option";
+
+		$mountId = $this->featureContext->getStorageId($mountPoint);
+
+		$key = "enable_sharing";
+
+		if ($setting) {
+			$value = "true";
+		} else {
+			$value = "false";
+		}
+
+		$this->invokingTheCommand(
+			"$command $mountId $key $value"
+		);
+	}
+
 	/**
 	 * @param string $mountPoint
 	 * @param string $setting "never" (switch it off) otherwise "Once every direct access"
@@ -935,6 +960,19 @@ public function theAdminHasSetTheExtStorageToReadOnly($mountPoint) {
 		$this->theCommandShouldHaveBeenSuccessful();
 	}
 
+	/**
+	 * @Given the administrator has set the external storage :mountPoint to sharing
+	 *
+	 * @param string $mountPoint
+	 *
+	 * @return void
+	 * @throws Exception
+	 */
+	public function theAdminHasSetTheExtStorageToSharing($mountPoint) {
+		$this->setExtStorageSharingUsingTheOccCommand($mountPoint);
+		$this->theCommandShouldHaveBeenSuccessful();
+	}
+
 	/**
 	 * @When the administrator sets the external storage :mountPoint to be never scanned automatically using the occ command
 	 *
diff --git a/tests/acceptance/features/bootstrap/WebUIAdminStorageSettingsContext.php b/tests/acceptance/features/bootstrap/WebUIAdminStorageSettingsContext.php
index db626b2ae867..c481d1b3682c 100644
--- a/tests/acceptance/features/bootstrap/WebUIAdminStorageSettingsContext.php
+++ b/tests/acceptance/features/bootstrap/WebUIAdminStorageSettingsContext.php
@@ -185,6 +185,7 @@ public function theAdministratorDeletesTheLastCreatedLocalStorageMountUsingTheWe
 	}
 
 	/**
+	 * @Given the administrator has enabled read-only for the last created local storage mount using the webUI
 	 * @When the administrator enables read-only for the last created local storage mount using the webUI
 	 *
 	 * @return void
@@ -192,6 +193,18 @@ public function theAdministratorDeletesTheLastCreatedLocalStorageMountUsingTheWe
 	public function theAdministratorEnablesReadonlyForTheLastCreatedLocalStorageMountUsingTheWebui() {
 		$this->adminStorageSettingsPage->openMountOptions($this->getSession());
 		$this->adminStorageSettingsPage->enableReadonlyMountOption($this->getSession());
+		$this->adminStorageSettingsPage->openMountOptions($this->getSession());
+	}
+
+	/**
+	 * @Given the administrator has enabled sharing for the last created local storage mount using the webUI
+	 *
+	 * @return void
+	 */
+	public function theAdministratorHasEnabledSharingForTheLastCreatedLocalStorageMountUsingTheWebui() {
+		$this->adminStorageSettingsPage->openMountOptions($this->getSession());
+		$this->adminStorageSettingsPage->enableSharingMountOption($this->getSession());
+		$this->adminStorageSettingsPage->openMountOptions($this->getSession());
 	}
 
 	/**
diff --git a/tests/acceptance/features/cliLocalStorage/createLocalStorageReadOnlyAndShare.feature b/tests/acceptance/features/cliLocalStorage/createLocalStorageReadOnlyAndShare.feature
new file mode 100644
index 000000000000..272a893a372a
--- /dev/null
+++ b/tests/acceptance/features/cliLocalStorage/createLocalStorageReadOnlyAndShare.feature
@@ -0,0 +1,40 @@
+@cli @skipOnLDAP @local_storage
+Feature: create local storage and enable read-only and sharing from the command line
+  As an admin
+  I want to create read-only local storage and enable sharing from the command line
+  So that local folders on my server can be made visible but read-only to users of ownCloud
+
+  Background:
+    Given these users have been created with default attributes and without skeleton files:
+      | username |
+      | user0    |
+      | user1    |
+    And the administrator has created the local storage mount "local_storage1"
+    And the administrator has uploaded file with content "this is a file in local storage" to "/local_storage1/file-in-local-storage.txt"
+    And the administrator has added user "user0" as the applicable user for the last local storage mount
+    And the administrator has set the external storage "local_storage1" to read-only
+    And the administrator has set the external storage "local_storage1" to sharing
+
+  Scenario: applicable user is not able to share with all permissions the top-level of read-only storage
+    When user "user0" shares folder "local_storage1" with user "user1" using the sharing API
+    Then the HTTP status code should be "200"
+    And the OCS status code should be "404"
+    And the OCS status message should be "Cannot set the requested share permissions for local_storage1"
+
+  Scenario: applicable user is able to share with read permissions the top-level of read-only storage
+    When user "user0" shares folder "local_storage1" with user "user1" with permissions "read" using the sharing API
+    Then the HTTP status code should be "200"
+    And the OCS status code should be "100"
+    And as "user1" folder "local_storage1" should exist
+
+  Scenario: applicable user is able to share with read permissions the file inside the top-level of read-only storage
+    When user "user0" shares file "/local_storage1/file-in-local-storage.txt" with user "user1" with permissions "read" using the sharing API
+    Then the HTTP status code should be "200"
+    And the OCS status code should be "100"
+    And as "user1" file "file-in-local-storage.txt" should exist
+
+  Scenario: applicable user is able to share with default permissions the file inside the top-level of read-only storage
+    When user "user0" shares file "/local_storage1/file-in-local-storage.txt" with user "user1" using the sharing API
+    Then the HTTP status code should be "200"
+    And the OCS status code should be "100"
+    And as "user1" file "file-in-local-storage.txt" should exist
\ No newline at end of file
diff --git a/tests/acceptance/features/cliLocalStorage/createLocalStorageReadWriteAndShare.feature b/tests/acceptance/features/cliLocalStorage/createLocalStorageReadWriteAndShare.feature
new file mode 100644
index 000000000000..5f3bd151fe10
--- /dev/null
+++ b/tests/acceptance/features/cliLocalStorage/createLocalStorageReadWriteAndShare.feature
@@ -0,0 +1,27 @@
+@cli @skipOnLDAP @local_storage
+Feature: create local storage and enable sharing from the command line
+  As an admin
+  I want to create read-write local storage and enable sharing from the command line
+  So that local folders on my server can be made visible and read-write to users of ownCloud
+
+  Background:
+    Given these users have been created with default attributes and without skeleton files:
+      | username |
+      | user0    |
+      | user1    |
+    And the administrator has created the local storage mount "local_storage1"
+    And the administrator has uploaded file with content "this is a file in local storage" to "/local_storage1/file-in-local-storage.txt"
+    And the administrator has added user "user0" as the applicable user for the last local storage mount
+    And the administrator has set the external storage "local_storage1" to sharing
+
+  Scenario: applicable user is able to share with all permissions the top-level of read-write storage
+    When user "user0" shares folder "local_storage1" with user "user1" using the sharing API
+    Then the HTTP status code should be "200"
+    And the OCS status code should be "100"
+    And as "user1" folder "local_storage1" should exist
+
+  Scenario: applicable user is able to share the file inside the top-level of read-write storage
+    When user "user0" shares file "/local_storage1/file-in-local-storage.txt" with user "user1" with permissions "read" using the sharing API
+    Then the HTTP status code should be "200"
+    And the OCS status code should be "100"
+    And as "user1" file "file-in-local-storage.txt" should exist
\ No newline at end of file
diff --git a/tests/acceptance/features/lib/AdminStorageSettingsPage.php b/tests/acceptance/features/lib/AdminStorageSettingsPage.php
index 64bc00d5d7e7..dbc9cbbd368c 100644
--- a/tests/acceptance/features/lib/AdminStorageSettingsPage.php
+++ b/tests/acceptance/features/lib/AdminStorageSettingsPage.php
@@ -58,6 +58,7 @@ class AdminStorageSettingsPage extends OwncloudPage {
 	protected $lastCreatedMountDeleteButtonXpath = "//tr[@id='addMountPoint']/preceding-sibling::tr[1]/td[@class='remove']";
 	protected $lastCreatedMountOptionsButtonXpath = "//tr[@id='addMountPoint']/preceding-sibling::tr[1]/td[@class='mountOptionsToggle']";
 	protected $setReadonlyId = "mountOptionsReadonly";
+	protected $setSharingId = "mountOptionsSharing";
 	protected $mountPointNameXpath = "//tr[@class='local'][%s]//input[@placeholder='Folder name']";
 
 	/**
@@ -324,6 +325,26 @@ public function enableReadonlyMountOption(Session $session) {
 		}
 	}
 
+	/**
+	 * enable sharing mount option
+	 *
+	 * @param Session $session
+	 *
+	 * @return void
+	 */
+	public function enableSharingMountOption(Session $session) {
+		$checkCheckbox = $this->findById($this->setSharingId);
+		$this->assertElementNotNull(
+			$checkCheckbox,
+			__METHOD__ .
+			" id " . $this->setSharingId .
+			" could not find checkbox for sharing mount option"
+		);
+		if ((!($checkCheckbox->isChecked()))) {
+			$checkCheckbox->click();
+		}
+	}
+
 	/**
 	 * toggle checkbox
 	 *
diff --git a/tests/acceptance/features/webUIAdminSettings/adminStorageSettings.feature b/tests/acceptance/features/webUIAdminSettings/adminStorageSettings.feature
index cb2a4a0b1bc1..c95213904088 100644
--- a/tests/acceptance/features/webUIAdminSettings/adminStorageSettings.feature
+++ b/tests/acceptance/features/webUIAdminSettings/adminStorageSettings.feature
@@ -163,3 +163,22 @@ Feature: admin storage settings
     Then the last created local storage mount should be listed on the webUI
     And the user re-logs in as "user1" using the webUI
     And folder "local_storage1" should be listed on the webUI
+
+  @issue-36803
+  Scenario: applicable user is not able to share top-level of read-only storage
+    Given these users have been created with default attributes and without skeleton files:
+      | username |
+      | user0    |
+      | user1    |
+    And the administrator has enabled the external storage
+    And the administrator has browsed to the admin storage settings page
+    And the administrator has created the local storage mount "local_storage1" from the admin storage settings page
+    And the administrator has added user "user0" as the applicable user for the last local storage mount from the admin storage settings page
+    And the administrator has enabled read-only for the last created local storage mount using the webUI
+    And the administrator has enabled sharing for the last created local storage mount using the webUI
+    And the user has re-logged in as "user0" using the webUI
+    When the user shares folder "local_storage1" with user "User One" using the webUI
+    Then notifications should be displayed on the webUI with the text
+      | Cannot set the requested share permissions for local_storage1 |
+   # And as "user1" folder "local_storage1" should exist
+    And as "user1" folder "local_storage1" should not exist
\ No newline at end of file