As far as I know, (1)the main, or most important, noun should be pluralised, except where (2)custom says otherwise (except when it shouldn't). We thus get: Lord Mayor of London --> Lords Mayor of London* by (1), and, sister-in-law --> sisters-in-law** by (1). Moving on to the possessive, we get sisters-in-law's cf. (sisters-in-law)'s.
*I actually was not sure about this one and asked the Lord Mayor of Camden about it once. He, a lawyer, prevaricated.
**"in-law" can hardly compare in importance to "sister", can it?