diff --git a/src/lxc/lxc-setcap.in b/src/lxc/lxc-setcap.in
index 48377292c..69c5bc56f 100644
--- a/src/lxc/lxc-setcap.in
+++ b/src/lxc/lxc-setcap.in
@@ -49,7 +49,9 @@ lxc_setcaps()
     setcap $LXC_UNSHARE_CAPS=ep @BINDIR@/lxc-unshare
     setcap $LXC_NETSTAT_CAPS=ep @BINDIR@/lxc-netstat
     setcap $LXC_INIT_CAPS=ep @LIBEXECDIR@/lxc-init
-    chmod 2777 @LXCPATH@
+
+    test -e @LXCPATH@ || mkdir -p @LXCPATH@
+    chmod 0777 @LXCPATH@
 }
 
 lxc_dropcaps()