source: branches/samba-3.5.x/docs-xml/smbdotconf/security/inheritpermissions.xml

<samba:parameter name="inherit permissions"
                 context="S"
                                 type="boolean"
                 xmlns:samba="http://www.samba.org/samba/DTD/samba-doc">
<description>
    <para>
        The permissions on new files and directories are normally governed by <smbconfoption name="create mask"/>,
        <smbconfoption name="directory mask"/>, <smbconfoption name="force create mode"/> and <smbconfoption
        name="force directory mode"/> but the boolean inherit permissions parameter overrides this.
        </para>
                
    <para>New directories inherit the mode of the parent directory,
    including bits such as setgid.</para>

    <para>
        New files inherit their read/write bits from the parent directory.  Their execute bits continue to be
        determined by <smbconfoption name="map archive"/>, <smbconfoption name="map hidden"/> and <smbconfoption
        name="map system"/> as usual.
        </para>

    <para>Note that the setuid bit is <emphasis>never</emphasis> set via 
    inheritance (the code explicitly prohibits this).</para>

    <para>This can be particularly useful on large systems with 
    many users, perhaps several thousand, to allow a single [homes] 
    share to be used flexibly by each user.</para>
</description>

<related>create mask</related>
<related>directory mask</related>
<related>force create mode</related>
<related>force directory mode</related>

<value type="default">no</value>
</samba:parameter>