The lmdown, lmremove, and lmreread commands are privileged. If you started lmgrd with the -p 2 switch then you must be a license administrator to run any of these three utilities.

A license administrator is a member of the UNIX or Linux lmadmin group or, if that group does not exist, a member of group 0.

In addition, lmgrd -x can disable lmutil lmdown and lmutil lmremove.