True
The setgid (Set Group ID) permission on an executable file allows users to execute the file with the permissions of the group that owns the file, rather than the user's current group. This is useful in multi-user systems where consistent access to shared resources or group-level privileges is needed.
For example, if a file belongs to group `project` and has the setgid bit set, any user executing that file will do so with `project` group permissions.