To setup a distribution list you must open the Distribution Lists form from the Action Module:
From here you can add/edit or delete the entries in the Distribution List:
Once you have made the list(s) you require go back to the Action Manager form and do the following:
1.Right click in the Action On / Reminder To window.
2.Select the option Add Reminder for a Distribution List.
3.Select the Distribution List(s) you want.
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4.Those users/email addresses will now get the action reminder.