--- muc.lib.lua	2016-10-26 18:26:53.432377291 +0000
+++ muc.lib.lua	2016-10-26 18:41:40.754426072 +0000
@@ -1256,15 +1256,16 @@
 	if actor == true then
 		actor = nil -- So we can pass it safely to 'publicise_occupant_status' below
 	else
+		local actor_affiliation = self:get_affiliation(actor);
+
 		-- Can't do anything to other owners or admins
 		local occupant_affiliation = self:get_affiliation(occupant.bare_jid);
-		if occupant_affiliation == "owner" or occupant_affiliation == "admin" then
+		if (occupant_affiliation == "owner" and actor_affiliation ~= "owner") or (occupant_affiliation == "admin" and actor_affiliation ~= "admin" and actor_affiliation ~= "owner") then
 			return nil, "cancel", "not-allowed";
 		end
 
 		-- If you are trying to give or take moderator role you need to be an owner or admin
 		if occupant.role == "moderator" or role == "moderator" then
-			local actor_affiliation = self:get_affiliation(actor);
 			if actor_affiliation ~= "owner" and actor_affiliation ~= "admin" then
 				return nil, "cancel", "not-allowed";
 			end