diff --git a/apps/files_sharing/appinfo/update.php b/apps/files_sharing/appinfo/update.php
index feafa5fb9921b2538957b83bc0f219c016ad585d..cb6af2d5f0d756f6c47018e32ef2d1f2801f87a2 100644
--- a/apps/files_sharing/appinfo/update.php
+++ b/apps/files_sharing/appinfo/update.php
@@ -1,16 +1,47 @@
 <?php
-
-// touch shared directories to trigger one-time re-scan for all users
-$datadir = \OCP\Config::getSystemValue('datadirectory');
-$currentVersion=OC_Appconfig::getValue('files_sharing', 'installed_version');
-if (version_compare($currentVersion, '0.2.2', '<')) {
-	if ($handle = opendir($datadir)) {
-		while (false !== ($entry = readdir($handle))) {
-			$sharedFolder = $datadir.'/'.$entry.'/files/Shared';
-			if ($entry != "." && $entry != ".." && is_dir($sharedFolder)) {
-				touch($sharedFolder);
+$installedVersion = OCP\Config::getAppValue('files_sharing', 'installed_version');
+if (version_compare($installedVersion, '0.3.2', '<')) {
+	$query = OCP\DB::prepare('SELECT * FROM `*PREFIX*sharing`');
+	$result = $query->execute();
+	$groupShares = array();
+	while ($row = $result->fetchRow()) {
+		$itemSource = OC_FileCache::getId($row['source'], '');
+		if ($itemSource != -1) {
+			$file = OC_FileCache::get($row['source'], '');
+			if ($file['mimetype'] == 'httpd/unix-directory') {
+				$itemType = 'folder';
+			} else {
+				$itemType = 'file';
 			}
+			if ($row['permissions'] == 0) {
+				$permissions = OCP\Share::PERMISSION_READ;
+			} else {
+				$permissions = OCP\Share::PERMISSION_READ | OCP\Share::PERMISSION_UPDATE;
+				if ($itemType == 'folder') {
+					$permissions |= OCP\Share::PERMISSION_CREATE;
+				}
+			}
+			$pos = strrpos($row['uid_shared_with'], '@');
+			if ($pos !== false && OC_Group::groupExists(substr($row['uid_shared_with'], $pos + 1))) {
+				$shareType = OCP\Share::SHARE_TYPE_GROUP;
+				$shareWith = substr($row['uid_shared_with'], 0, $pos);
+				if (isset($groupShares[$shareWith][$itemSource])) {
+					continue;
+				} else {
+					$groupShares[$shareWith][$itemSource] = true;
+				}
+			} else if ($row['uid_shared_with'] == 'public') {
+				$shareType = OCP\Share::SHARE_TYPE_LINK;
+				$shareWith = null;
+			} else {
+				$shareType = OCP\Share::SHARE_TYPE_USER;
+				$shareWith = $row['uid_shared_with'];
+			}
+			OC_User::setUserId($row['uid_owner']);
+			OCP\Share::shareItem($itemType, $itemSource, $shareType, $shareWith, $permissions);
 		}
-		closedir($handle);
 	}
+	// NOTE: Let's drop the table after more testing
+// 	$query = OCP\DB::prepare('DROP TABLE `*PREFIX*sharing`');
+// 	$query->execute();
 }
\ No newline at end of file
diff --git a/apps/files_sharing/appinfo/version b/apps/files_sharing/appinfo/version
index a2268e2de4458c0966915535aa599e828b6d22ae..9fc80f937fab96c3d0109624aca8028d0f3edff6 100644
--- a/apps/files_sharing/appinfo/version
+++ b/apps/files_sharing/appinfo/version
@@ -1 +1 @@
-0.3.1
\ No newline at end of file
+0.3.2
\ No newline at end of file
diff --git a/apps/files_sharing/lib/share/file.php b/apps/files_sharing/lib/share/file.php
index c8821ee0fe855d8eb3e71d54c598c2b872ab89bf..2149da1d7319d299b5903a74b58d57983afd0cee 100644
--- a/apps/files_sharing/lib/share/file.php
+++ b/apps/files_sharing/lib/share/file.php
@@ -30,7 +30,7 @@ class OC_Share_Backend_File implements OCP\Share_Backend_File_Dependent {
 
 	public function isValidSource($itemSource, $uidOwner) {
 		$path = OC_FileCache::getPath($itemSource, $uidOwner);
-		if (OC_Filesystem::file_exists($path)) {
+		if ($path) {
 			$this->path = $path;
 			return true;
 		}