A distributed control system is proposed which uses the Conservative Power Theory (CPT) and a consensus algorithm to share imbalance and harmonics between different converters in three-phase four-wire droop-controlled Microgrids (MGs). The CPT is used to identify the balanced, unbalanced and distorted components of the currents and powers in the system. Control loops based on virtual impedance and implemented in the stationary a-b-c frame are then used to distribute these components between the various converters in the MG. The magnitudes of the virtual impedances are adaptively calculated using a novel consensus-based distributed control scheme with the aim of sharing imbalances and harmonics according to the residual VA capacity of each converter whilst regulating the imbalance and distortion at their output to meet the appropriate IEEE power quality standards. Extensive simulations show that the proposed distributed control has excellent performance, and experimental validation is provided using a laboratory-scale 4-wire MG.