I appreciate all the replies and look forward to more. Those so far have given me a lot of insight. One point was made, and well taken, that if a boy is assigned a leadership position, does nothing with it, and the troop leadership allows him to finish his tenure, then the troop leadership has failed the boy and the troop. As the District advancement chair, I have no problem making this "additional requirement" go away. I do feel however that there should be some kind of standard set at each troop. It does not have to be a actual number, but each boy should be observed and we should note his efforts and the growth in his abilities.
I did find out that the particular boy in question has not met unit participation requirements,in fact, he has not done anything at all this year. He has been a Life Scout with his Eagle project completed for almost two years now and all of these issues were raised about a week before his eighteenth b-day. On top of it all, his Scoutmaster would not sign the application because he felt that the boy had not even tried to meet any standards at all. Even if the District participation rule was a problem, the boy has known about it since his Eagle preparation class over two years ago and has had ample time to question it.
On another note, this is my first time in a forum like this, but it will not be my last. Being able to gain wisdom from scouters all over the nation has been great. Thank you!!