This article was created in response to a support issue logged with K2. The content may include typographical errors and may be revised at any time without notice This article is not considered official documentation for K2 software and is provided "as is" with no warranties.
In K2 Management site, you cannot move SmartObjects between categories since the Move function is disabled, even though you have the rights to complete the action. You are also unable to rename a category as the Rename option is also disabled.
This is a known issue in K2 Five 5.1, and the fix is included in the latest update.
This issue is fixed in K2 Five 5.1 FP5: http://help.k2.com/kb002505
Please submit a support ticket to obtain the fix pack.