diff --git a/apps/files_encryption/hooks/hooks.php b/apps/files_encryption/hooks/hooks.php
index 1ebfdb1ae0..6d982b2c3b 100644
--- a/apps/files_encryption/hooks/hooks.php
+++ b/apps/files_encryption/hooks/hooks.php
@@ -178,10 +178,34 @@ class Hooks {
 		$session = new Session();
 		$userId = \OCP\User::getUser();
 		$util = new Util( $view, $userId );
+		$path = $util->fileIdToPath( $params['itemSource'] );
 		
-		$path = Util::getFilePath( $params['itemSource'] );
-
-		return Crypt::updateKeyfile( $view, $session, $path );
+		$usersSharing = \OCP\Share::getUsersSharingFile( $path, true );
+		
+		$allPaths = $util->getPaths( $path );
+		
+		$failed = array();
+		
+		foreach ( $allPaths as $path ) {
+		
+			if ( ! $util->setSharedFileKeyfiles( $session, $usersSharing, $path ) ) {
+			
+				$failed[] = $path;
+				
+			}
+			
+		}
+		
+		// If no attempts to set keyfiles failed
+		if ( empty( $failed ) ) {
+		
+			return true;
+			
+		} else {
+		
+			return false;
+			
+		}
 		
 	}
 	
@@ -190,11 +214,13 @@ class Hooks {
 	 */
 	public static function postUnshare( $params ) {
 	
-		$view = new \OC_FilesystemView( '/' );
-		$session = new Session();
-		$path = Util::getFilePath( $params['itemSource'] );
-		
-		return Crypt::updateKeyfile( $view, $session, $path );
+// 		$view = new \OC_FilesystemView( '/' );
+// 		$session = new Session();
+// 		$userId = \OCP\User::getUser();
+// 		$util = new Util( $view, $userId );
+// 		$path = $util->fileIdToPath( $params['itemSource'] );
+// 		
+// 		return Crypt::updateKeyfile( $view, $util, $session, $userId, $path );
 		
 	}
 	
@@ -203,11 +229,13 @@ class Hooks {
 	 */
 	public static function postUnshareAll( $params ) {
 	
-		$view = new \OC_FilesystemView( '/' );
-		$session = new Session();
-		$path = Util::getFilePath( $params['itemSource'] );
-		
-		return Crypt::updateKeyfile( $view, $session, $path );
+// 		$view = new \OC_FilesystemView( '/' );
+// 		$session = new Session();
+// 		$userId = \OCP\User::getUser();
+// 		$util = new Util( $view, $userId );
+// 		$path = $util->fileIdToPath( $params['itemSource'] );
+// 		
+// 		return Crypt::updateKeyfile( $view, $util, $session, $userId, $path );
 		
 	}
 	
diff --git a/apps/files_encryption/lib/crypt.php b/apps/files_encryption/lib/crypt.php
index 1b0167834e..a677de950a 100755
--- a/apps/files_encryption/lib/crypt.php
+++ b/apps/files_encryption/lib/crypt.php
@@ -744,106 +744,4 @@ class Crypt {
 	
 	}
 	
-	
-	/**
-	 * @brief Encrypt keyfile to multiple users
-	 * @param array $users list of users which should be able to access the file
-	 * @param string $filePath path of the file to be shared
-	 */
-	private static function encKeyfileToMultipleUsers( \OC_FilesystemView $view, Util $util, Session $session, $userId, array $users, $filePath ) {
-	
-		// Make sure users are capable of sharing
-		$filteredUids = $util->filterShareReadyUsers( $users );
-		
-		// Get public keys for each user, ready for generating sharekeys
-		$userPubKeys = Keymanager::getPublicKeys( $view, $filteredUids ); // TODO: check this includes the owner's public key
-
-		\OC_FileProxy::$enabled = false;
-
-		// Get the current users's private key for decrypting existing keyfile
-		$privateKey = $session->getPrivateKey();
-		
-		// We need to get a decrypted key for the file
-		// Determine how to decrypt the keyfile by checking if current user is owner
-		if ( $userId == \OC\Files\Filesystem::getOwner( $filePath ) ) {
-		
-			// If current user is owner, decrypt without using sharekey
-		
-		} else {
-		
-			// Current user is resharing a file they don't own
-			// Decrypt keyfile using sharekey
-		
-		}
-		
-		// get the existing keyfile
-		$encKeyfile = Keymanager::getFileKey( $view, $owner, $filePath );
-
-		// decrypt the existing keyfile
-		$plainKeyfile = Crypt::keyDecrypt( $encKeyfile, $privateKey );
-		
-		trigger_error("PUBKEYS = ". var_export($userPubKeys, 1));
-		
-		// re-enc keyfile to sharekeys
-		$shareKeys = Crypt::multiKeyEncrypt( $plainKeyfile, $userPubKeys );
-
-		// save sharekeys
-		if ( ! Keymanager::setShareKeys( $view, $filePath, $shareKeys['keys'] ) ) {
-
-			trigger_error( "SET Share keys failed" );
-
-		}
-
-		// Delete existing keyfile
-		// Do this last to ensure file is recoverable in case of error
-		// 		Keymanager::deleteFileKey( $view, $userId, $params['fileTarget'] );
-	
-		\OC_FileProxy::$enabled = true;
-
-		return true;
-	}
-	
-	/**
-	 * @brief update keyfile encryption for given path and all sub folders/files
-	 * @param path which needs to be updated
-	 * @return bool success
-	 */
-	public static function updateKeyfile( \OC_FilesystemView $view, Util $util, Session $session, $path ) {
-		
-		// Make path include 'files' dir for OC_FSV operations
-		$fPath = 'files' . $path;
-		
-		$result = true;
-		
-		if ( ! $view->is_dir( $fPath ) ) {
-		
-			$shares = \OCP\Share::getUsersSharingFile( $path, true );
-			$result = self::encKeyfileToMultipleUsers( $view, $util, $session, $shares, $path );
-			
-		} else {
-		
-			$content = $view->getDirectoryContent( $fPath );
-			
-			foreach ( $content as $c ) {
-			
-				$path = substr($c['path'], 5);
-				
-				if ( $view->is_dir( $fPath ) ) {
-				
-					$result &= self::updateKeyfile( $path );
-					
-				} else {
-				
-					$shares = \OCP\Share::getUsersSharingFile( $path, true );
-					$result &= self::encKeyfileToMultipleUsers( $view, $util, $session, $shares, $path );
-					
-				}
-			}
-			
-		}
-		
-		return $result;
-
-	}
-	
 }
\ No newline at end of file
diff --git a/apps/files_encryption/lib/keymanager.php b/apps/files_encryption/lib/keymanager.php
index 5f9eea1a0b..ec1fdd1fd5 100755
--- a/apps/files_encryption/lib/keymanager.php
+++ b/apps/files_encryption/lib/keymanager.php
@@ -305,8 +305,8 @@ class Keymanager {
 	/**
 	 * @brief retrieve shareKey for an encrypted file
 	 * @param \OC_FilesystemView $view
-	 * @param $userId
-	 * @param $filePath
+	 * @param string $userId
+	 * @param string $filePath
 	 * @internal param \OCA\Encryption\file $string name
 	 * @return string file key or false
 	 * @note The sharekey returned is encrypted. Decryption
diff --git a/apps/files_encryption/lib/proxy.php b/apps/files_encryption/lib/proxy.php
index 3e4178e8a8..9e6a11d9d4 100644
--- a/apps/files_encryption/lib/proxy.php
+++ b/apps/files_encryption/lib/proxy.php
@@ -169,6 +169,24 @@ class Proxy extends \OC_FileProxy {
 	 * @param string $data Data that has been read from file
 	 */
 	public function postFile_get_contents( $path, $data ) {
+	
+		// FIXME: $path for shared files is just /uid/files/Shared/filepath
+		
+		$userId = \OCP\USER::getUser();
+		$view = new \OC_FilesystemView( '/' );
+		$util = new Util( $view, $userId );
+		
+		if ( $util->isSharedPath( $path ) ) {
+		
+			$relPath = $util->stripSharedFilePath( $path );
+		
+		} else {
+		
+			$relPath = $util->stripUserFilesPath( $path );
+		
+		}
+		
+	
 		// TODO check for existing key file and reuse it if possible to avoid problems with versioning etc.
 		// Disable encryption proxy to prevent recursive calls
 		\OC_FileProxy::$enabled = false;
@@ -178,27 +196,34 @@ class Proxy extends \OC_FileProxy {
 			Crypt::mode() == 'server' 
 			&& Crypt::isCatfile( $data ) 
 		) {
-			$view = new \OC_FilesystemView( '/' );
+		
 			// TODO use get owner to find correct location of key files for shared files
-			$userId = \OCP\USER::getUser();
 			$session = new Session();
-			$util = new Util( $view, $userId );
-			$filePath = $util->stripUserFilesPath( $path );
 			$privateKey = $session->getPrivateKey( $userId );
 			
+			// Get the file owner so we can retrieve its keyfile
+			$fileOwner = \OC\Files\Filesystem::getOwner( $relPath ); //NOTE: This might be false! make sure the path passed to it is right
+			$fileOwner = 'admin'; // FIXME: Manually set the correct UID for now
+			
 			// Get the encrypted keyfile
-			$encKeyfile = Keymanager::getFileKey( $view, $userId, $filePath );
+			$encKeyfile = Keymanager::getFileKey( $view, $fileOwner, $relPath );
+			
+			trigger_error("\$encKeyfile = ". var_export($encKeyfile, 1));
+			
+			// Attempt to fetch the user's shareKey
+			$shareKey = Keymanager::getShareKey( $view, $userId, $relPath );
+			
+			trigger_error("\$shareKey = ".var_export($shareKey, 1));
 			
 			// Check if key is shared or not
-			if ( \OCP\Share::isSharedFile( $filePath ) ) {
-			
-				// If key is shared, fetch the user's shareKey
-				$shareKey = Keymanager::getShareKey( $view, $userId, $filePath );
+			if ( $shareKey ) {
 				
 				\OC_FileProxy::$enabled = false;
 				
 				// Decrypt keyfile with shareKey
 				$plainKeyfile = Crypt::multiKeyDecrypt( $encKeyfile, $shareKey, $privateKey );
+				
+				trigger_error("PROXY plainkeyfile = ". var_export($plainKeyfile, 1));
 			
 			} else {
 				
diff --git a/apps/files_encryption/lib/util.php b/apps/files_encryption/lib/util.php
index 8ca51c95d7..ac098cd877 100644
--- a/apps/files_encryption/lib/util.php
+++ b/apps/files_encryption/lib/util.php
@@ -224,7 +224,7 @@ class Util {
 	 * @note $directory needs to be a path relative to OC data dir. e.g.
 	 *       /admin/files NOT /backup OR /home/www/oc/data/admin/files
 	 */
-	public function findFiles( $directory ) {
+	public function findEncFiles( $directory ) {
 		
 		// Disable proxy - we don't want files to be decrypted before
 		// we handle them
@@ -251,7 +251,7 @@ class Util {
 					// its contents
 					if ( $this->view->is_dir( $filePath ) ) { 
 						
-						$this->findFiles( $filePath );
+						$this->findEncFiles( $filePath );
 					
 					// If the path is a file, determine 
 					// its encryption status
@@ -348,6 +348,38 @@ class Util {
 	
 	}
 	
+	/**
+	 * @brief Format a shared path to be relative to the /user/files/ directory
+	 * @note Expects a path like /uid/files/Shared/filepath
+	 */
+	public function stripSharedFilePath( $path ) {
+	
+		$trimmed = ltrim( $path, '/' );
+		$split = explode( '/', $trimmed );
+		$sliced = array_slice( $split, 3 );
+		$relPath = implode( '/', $sliced );
+		
+		return $relPath;
+	
+	}
+	
+	public function isSharedPath( $path ) {
+	
+		$trimmed = ltrim( $path, '/' );
+		$split = explode( '/', $trimmed );
+		
+		if ( $split[2] == "Shared" ) {
+		
+			return true;
+		
+		} else {
+		
+			return false;
+		
+		}
+	
+	}
+	
 	/**
 	 * @brief Encrypt all files in a directory
 	 * @param string $publicKey the public key to encrypt files with
@@ -356,7 +388,7 @@ class Util {
 	 */
 	public function encryptAll( $publicKey, $dirPath, $legacyPassphrase = null, $newPassphrase = null ) {
 	
-		if ( $found = $this->findFiles( $dirPath ) ) {
+		if ( $found = $this->findEncFiles( $dirPath ) ) {
 		
 			// Disable proxy to prevent file being encrypted twice
 			\OC_FileProxy::$enabled = false;
@@ -478,13 +510,18 @@ class Util {
 	 * @param $fileId id of the file
 	 * @return path of the file
 	 */
-	public static function getFilePath($fileId) {
-		$query = \OC_DB::prepare('SELECT `path`'
+	public static function fileIdToPath( $fileId ) {
+	
+		$query = \OC_DB::prepare( 'SELECT `path`'
 				.' FROM `*PREFIX*filecache`'
-				.' WHERE `fileid` = ?');
-		$result = $query->execute(array($fileId));
+				.' WHERE `fileid` = ?' );
+				
+		$result = $query->execute( array( $fileId ) );
+		
 		$row = $result->fetchRow();
-		return substr($row['path'], 5);
+		
+		return substr( $row['path'], 5 );
+	
 	}
 	
 	/**
@@ -527,5 +564,121 @@ class Util {
 		return $userIds;
 		
 	}
+	
+	/**
+	 * @brief Expand given path to all sub files & folders
+	 * @param Session $session
+	 * @param string $path path which needs to be updated
+	 * @return bool outcome of attempt to set keyfiles
+	 */
+	public function getPaths( $path ) {
+		
+		// Default return value is success
+		$result = true;
+	
+		// Make path include 'files' dir for OC_FSV operations
+		$fPath = 'files' . $path;
+		
+		// If we're handling a single file
+		if ( ! $this->view->is_dir( $fPath ) ) {
+			
+			$pathsArray[] = $path;
+			
+		// If we're handling a folder (recursively)
+		} else {
+		
+			$subFiles = $this->view->getDirectoryContent( $fPath );
+			
+			foreach ( $subFiles as $file ) {
+			
+				$filePath = substr( $file['path'], 5 );
+				
+				// If this is a nested file
+				if ( ! $this->view->is_dir( $fPath ) ) {
+					
+					// Add the file path to array
+					$pathsArray[] = $path;
+					
+				} else {
+				
+					// If this is a nested folder
+					$dirPaths = $this->getPaths( $filePath );
+					
+					// Add all subfiles & folders to the array
+					$pathsArray = array_merge( $dirPaths, $pathsArray );
+					
+				}
+			}
+			
+		}
+		
+		return $pathsArray;
+
+	}
+	
+	/**
+	 * @brief Encrypt keyfile to multiple users
+	 * @param array $users list of users which should be able to access the file
+	 * @param string $filePath path of the file to be shared
+	 */
+	public function setSharedFileKeyfiles( Session $session, array $users, $filePath ) {
+	
+		// Make sure users are capable of sharing
+		$filteredUids = $this->filterShareReadyUsers( $users );
+		
+		// Get public keys for each user, ready for generating sharekeys
+		$userPubKeys = Keymanager::getPublicKeys( $this->view, $filteredUids ); // TODO: check this includes the owner's public key
+
+		\OC_FileProxy::$enabled = false;
+
+		// Get the current users's private key for decrypting existing keyfile
+		$privateKey = $session->getPrivateKey();
+		
+		$fileOwner = \OC\Files\Filesystem::getOwner( $filePath );
+		
+		// Get the encrypted keyfile
+		// NOTE: the keyfile format depends on how it was encrypted! At
+		// this stage we don't know how it was encrypted
+		$encKeyfile = Keymanager::getFileKey( $this->view, $this->userId, $filePath );
+		
+		// We need to decrypt the keyfile
+		// Has the file been shared yet?
+		if ( 
+			$this->userId == $fileOwner
+			&& ! Keymanager::getShareKey( $this->view, $this->userId, $filePath ) // NOTE: we can't use isShared() here because it's a post share hook so it always returns true
+		) {
+		
+			// The file has no shareKey, and its keyfile must be 
+			// decrypted conventionally
+			$plainKeyfile = Crypt::keyDecrypt( $encKeyfile, $privateKey );
+			
+		
+		} else {
+			
+			// The file has a shareKey and must use it for decryption
+			$shareKey = Keymanager::getShareKey( $this->view, $this->userId, $filePath );
+		
+			$plainKeyfile = Crypt::multiKeyDecrypt( $encKeyfile, $shareKey, $privateKey );
+			
+		}
+		
+		// Re-enc keyfile to (additional) sharekeys
+		$newShareKeys = Crypt::multiKeyEncrypt( $plainKeyfile, $userPubKeys );
+
+		// Save new sharekeys to all necessary user folders
+		if ( ! Keymanager::setShareKeys( $this->view, $filePath, $newShareKeys['keys'] ) ) {
+
+			trigger_error( "SET Share keys failed" );
+
+		}
+
+		// Delete existing keyfile
+		// Do this last to ensure file is recoverable in case of error
+		// Keymanager::deleteFileKey( $this->view, $this->userId, $params['fileTarget'] );
+	
+		\OC_FileProxy::$enabled = true;
+
+		return true;
+	}
 
 }
diff --git a/apps/files_encryption/test/util.php b/apps/files_encryption/test/util.php
index 1cdeff8008..275e60f4bd 100755
--- a/apps/files_encryption/test/util.php
+++ b/apps/files_encryption/test/util.php
@@ -150,13 +150,13 @@ class Test_Enc_Util extends \PHPUnit_Framework_TestCase {
 		
 	}
 	
-	function testFindFiles() {
+	function testFindEncFiles() {
 	
 // 		$this->view->chroot( "/data/{$this->userId}/files" );
 
 		$util = new Encryption\Util( $this->view, $this->userId );
 		
-		$files = $util->findFiles( '/', 'encrypted' );
+		$files = $util->findEncFiles( '/', 'encrypted' );
 		
 		var_dump( $files );