External user can not share folder with existing Azure user

Copper Contributor

Good evening,

We have a situation in which we work with 2 companies on their join-venture entity on a separated tenant.

So we have a joint venture between company A and company B.

Both companies use B2B direct connect to access shared channels in company C (joint venture entity).


External users (from company A and company B) are unable to share folders from company C. They always see a message:

We couldn't find an exact match.


They are not trying to share externally, we agreed to share files only with existing team members, so they are added at least to one channel in company C (this is done via PowerAutomate and Microsoft Forms - and works).


Internal users (company C) are able to share with internal users (company A and company B) if they are added to at least one channel -> the prompting also suggest external users, which are not members of a specific channel.


External users -> they can write full e-mail address (no prompting - expected behavior), but than they receive a message:

We couldn't find an exact match.

External users can find only existing channel members of the channel they want to share (what is not sufficient). We have General channel member and want to share something from Slides channel (for example).


Maybe there is a way to enable it for external users? I already tried a few SharePoint Management Shell commands, but it did not work for us.


Thank you for any response.

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